Correlation Between Tibet Huayu and Yankershop Food
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By analyzing existing cross correlation between Tibet Huayu Mining and Yankershop Food Co, you can compare the effects of market volatilities on Tibet Huayu and Yankershop Food and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tibet Huayu with a short position of Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Yankershop Food.
Diversification Opportunities for Tibet Huayu and Yankershop Food
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Yankershop is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food and Tibet Huayu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tibet Huayu Mining are associated (or correlated) with Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Yankershop Food go up and down completely randomly.
Pair Corralation between Tibet Huayu and Yankershop Food
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.44 times more return on investment than Yankershop Food. However, Tibet Huayu is 1.44 times more volatile than Yankershop Food Co. It trades about 0.04 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.02 per unit of risk. If you would invest 893.00 in Tibet Huayu Mining on August 28, 2024 and sell it today you would earn a total of 457.00 from holding Tibet Huayu Mining or generate 51.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Yankershop Food Co
Performance |
| Timeline |
| Tibet Huayu Mining |
| Yankershop Food |
Tibet Huayu and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Yankershop Food
The main advantage of trading using opposite Tibet Huayu and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Yankershop Food can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
| Yankershop Food vs. Shenzhen Centralcon Investment | Yankershop Food vs. Tieling Newcity Investment | Yankershop Food vs. Dr Peng Telecom | Yankershop Food vs. Hunan Investment Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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