Correlation Between Tibet Huayu and Jinyu Bio
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By analyzing existing cross correlation between Tibet Huayu Mining and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Tibet Huayu and Jinyu Bio 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 Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Jinyu Bio.
Diversification Opportunities for Tibet Huayu and Jinyu Bio
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Jinyu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Jinyu Bio Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinyu Bio Technology 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 Jinyu Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinyu Bio Technology has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Jinyu Bio go up and down completely randomly.
Pair Corralation between Tibet Huayu and Jinyu Bio
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.08 times more return on investment than Jinyu Bio. However, Tibet Huayu is 1.08 times more volatile than Jinyu Bio Technology Co. It trades about -0.1 of its potential returns per unit of risk. Jinyu Bio Technology Co is currently generating about -0.19 per unit of risk. If you would invest 1,330 in Tibet Huayu Mining on October 25, 2024 and sell it today you would lose (59.00) from holding Tibet Huayu Mining or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Tibet Huayu Mining |
| Jinyu Bio Technology |
Tibet Huayu and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Jinyu Bio
The main advantage of trading using opposite Tibet Huayu and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Jinyu Bio 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 Jinyu Bio will offset losses from the drop in Jinyu Bio's long position.| Tibet Huayu vs. Guilin Seamild Foods | Tibet Huayu vs. Youyou Foods Co | Tibet Huayu vs. Xiwang Foodstuffs Co | Tibet Huayu vs. Zhongjing Food Co |
| Jinyu Bio vs. Agricultural Bank of | Jinyu Bio vs. Industrial and Commercial | Jinyu Bio vs. Bank of China | Jinyu Bio vs. China Construction Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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