Correlation Between Tibet Huayu and Tongxing Environmental
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By analyzing existing cross correlation between Tibet Huayu Mining and Tongxing Environmental Protection, you can compare the effects of market volatilities on Tibet Huayu and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Tongxing Environmental.
Diversification Opportunities for Tibet Huayu and Tongxing Environmental
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tibet and Tongxing is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Tibet Huayu and Tongxing Environmental
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 0.53 times more return on investment than Tongxing Environmental. However, Tibet Huayu Mining is 1.88 times less risky than Tongxing Environmental. It trades about -0.44 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about -0.31 per unit of risk. If you would invest 1,412 in Tibet Huayu Mining on October 15, 2024 and sell it today you would lose (209.00) from holding Tibet Huayu Mining or give up 14.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Tibet Huayu Mining |
| Tongxing Environmental |
Tibet Huayu and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Tongxing Environmental
The main advantage of trading using opposite Tibet Huayu and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental'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 |
| Tongxing Environmental vs. China Sports Industry | Tongxing Environmental vs. Xilong Chemical Co | Tongxing Environmental vs. Shenzhen Noposion Agrochemicals | Tongxing Environmental vs. Dymatic Chemicals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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