Correlation Between Tibet Huayu and Jinsanjiang Silicon
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By analyzing existing cross correlation between Tibet Huayu Mining and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Tibet Huayu and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Jinsanjiang Silicon.
Diversification Opportunities for Tibet Huayu and Jinsanjiang Silicon
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tibet and Jinsanjiang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Tibet Huayu and Jinsanjiang Silicon
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 0.38 times more return on investment than Jinsanjiang Silicon. However, Tibet Huayu Mining is 2.64 times less risky than Jinsanjiang Silicon. It trades about -0.18 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.09 per unit of risk. If you would invest 1,374 in Tibet Huayu Mining on October 18, 2024 and sell it today you would lose (107.00) from holding Tibet Huayu Mining or give up 7.79% 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. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Tibet Huayu Mining |
| Jinsanjiang Silicon |
Tibet Huayu and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Jinsanjiang Silicon
The main advantage of trading using opposite Tibet Huayu and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Tibet Huayu vs. New Hope Dairy | Tibet Huayu vs. China Asset Management | Tibet Huayu vs. Chengdu Spaceon Electronics | Tibet Huayu vs. Great Sun Foods Co |
| Jinsanjiang Silicon vs. Dr Peng Telecom | Jinsanjiang Silicon vs. Tibet Huayu Mining | Jinsanjiang Silicon vs. Ningbo Jintian Copper | Jinsanjiang Silicon vs. Guangxi Wuzhou Communications |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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