Correlation Between Tibet Huayu and Jiangsu Yueda
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By analyzing existing cross correlation between Tibet Huayu Mining and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Tibet Huayu and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Jiangsu Yueda.
Diversification Opportunities for Tibet Huayu and Jiangsu Yueda
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Jiangsu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Tibet Huayu and Jiangsu Yueda
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.53 times more return on investment than Jiangsu Yueda. However, Tibet Huayu is 1.53 times more volatile than Jiangsu Yueda Investment. It trades about 0.2 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.1 per unit of risk. If you would invest 1,262 in Tibet Huayu Mining on November 1, 2024 and sell it today you would earn a total of 119.00 from holding Tibet Huayu Mining or generate 9.43% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Tibet Huayu Mining |
| Jiangsu Yueda Investment |
Tibet Huayu and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Jiangsu Yueda
The main advantage of trading using opposite Tibet Huayu and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Tibet Huayu vs. Silkroad Visual Technology | Tibet Huayu vs. Sichuan Fulin Transportation | Tibet Huayu vs. Hainan Haiqi Transportation | Tibet Huayu vs. Zhengping RoadBridge Constr |
| Jiangsu Yueda vs. Guangdong Jingyi Metal | Jiangsu Yueda vs. Universal Scientific Industrial | Jiangsu Yueda vs. Tibet Huayu Mining | Jiangsu Yueda vs. Sinocat Environmental Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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