Correlation Between Tibet Huayu and Fujian Oriental
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By analyzing existing cross correlation between Tibet Huayu Mining and Fujian Oriental Silver, you can compare the effects of market volatilities on Tibet Huayu and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Fujian Oriental.
Diversification Opportunities for Tibet Huayu and Fujian Oriental
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Fujian is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Fujian Oriental go up and down completely randomly.
Pair Corralation between Tibet Huayu and Fujian Oriental
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.38 times more return on investment than Fujian Oriental. However, Tibet Huayu is 1.38 times more volatile than Fujian Oriental Silver. It trades about 0.16 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.26 per unit of risk. If you would invest 1,249 in Tibet Huayu Mining on August 29, 2024 and sell it today you would earn a total of 186.00 from holding Tibet Huayu Mining or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Fujian Oriental Silver
Performance |
| Timeline |
| Tibet Huayu Mining |
| Fujian Oriental Silver |
Tibet Huayu and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Fujian Oriental
The main advantage of trading using opposite Tibet Huayu and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental'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 |
| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. Agricultural Bank of | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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