Correlation Between Tibet Huayu and Guangzhou Haozhi
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By analyzing existing cross correlation between Tibet Huayu Mining and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Tibet Huayu and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Guangzhou Haozhi.
Diversification Opportunities for Tibet Huayu and Guangzhou Haozhi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tibet and Guangzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Tibet Huayu and Guangzhou Haozhi
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 0.48 times more return on investment than Guangzhou Haozhi. However, Tibet Huayu Mining is 2.08 times less risky than Guangzhou Haozhi. It trades about -0.49 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about -0.25 per unit of risk. If you would invest 1,456 in Tibet Huayu Mining on October 14, 2024 and sell it today you would lose (253.00) from holding Tibet Huayu Mining or give up 17.38% 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. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Tibet Huayu Mining |
| Guangzhou Haozhi Ind |
Tibet Huayu and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Guangzhou Haozhi
The main advantage of trading using opposite Tibet Huayu and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi'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 |
| Guangzhou Haozhi vs. Beijing Yanjing Brewery | Guangzhou Haozhi vs. Anhui Transport Consulting | Guangzhou Haozhi vs. Chengdu Xinzhu RoadBridge | Guangzhou Haozhi vs. Shaanxi Construction Machinery |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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