Correlation Between Tibet Huayu and Tianjin Capital
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By analyzing existing cross correlation between Tibet Huayu Mining and Tianjin Capital Environmental, you can compare the effects of market volatilities on Tibet Huayu and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Tianjin Capital.
Diversification Opportunities for Tibet Huayu and Tianjin Capital
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Tianjin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Tianjin Capital go up and down completely randomly.
Pair Corralation between Tibet Huayu and Tianjin Capital
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 2.12 times more return on investment than Tianjin Capital. However, Tibet Huayu is 2.12 times more volatile than Tianjin Capital Environmental. It trades about 0.11 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about -0.23 per unit of risk. If you would invest 1,311 in Tibet Huayu Mining on October 30, 2024 and sell it today you would earn a total of 70.00 from holding Tibet Huayu Mining or generate 5.34% 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. Tianjin Capital Environmental
Performance |
| Timeline |
| Tibet Huayu Mining |
| Tianjin Capital Envi |
Tibet Huayu and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Tianjin Capital
The main advantage of trading using opposite Tibet Huayu and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| Tibet Huayu vs. Shandong Sanyuan Biotechnology | Tibet Huayu vs. Iat Automobile Technology | Tibet Huayu vs. Jinhe Biotechnology Co | Tibet Huayu vs. Shanghai Rightongene Biotechnology |
| Tianjin Capital vs. Anhui Jianghuai Automobile | Tianjin Capital vs. Shandong Polymer Biochemicals | Tianjin Capital vs. Jiangsu Phoenix Publishing | Tianjin Capital vs. Changjiang Publishing Media |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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