Correlation Between Tibet Huayu and Gan Yuan
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By analyzing existing cross correlation between Tibet Huayu Mining and Gan Yuan Foods, you can compare the effects of market volatilities on Tibet Huayu and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Gan Yuan.
Diversification Opportunities for Tibet Huayu and Gan Yuan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tibet and Gan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Gan Yuan go up and down completely randomly.
Pair Corralation between Tibet Huayu and Gan Yuan
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to under-perform the Gan Yuan. In addition to that, Tibet Huayu is 1.51 times more volatile than Gan Yuan Foods. It trades about -0.01 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.04 per unit of volatility. If you would invest 6,785 in Gan Yuan Foods on August 28, 2024 and sell it today you would earn a total of 525.00 from holding Gan Yuan Foods or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Gan Yuan Foods
Performance |
| Timeline |
| Tibet Huayu Mining |
| Gan Yuan Foods |
Tibet Huayu and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Gan Yuan
The main advantage of trading using opposite Tibet Huayu and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan'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 |
| Gan Yuan vs. Marssenger Kitchenware Co | Gan Yuan vs. XinJiang GuoTong Pipeline | Gan Yuan vs. Yindu Kitchen Equipment | Gan Yuan vs. Zhejiang Kingland Pipeline |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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