Correlation Between Tibet Huayu and Jiangsu Financial
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By analyzing existing cross correlation between Tibet Huayu Mining and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Tibet Huayu and Jiangsu Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Jiangsu Financial.
Diversification Opportunities for Tibet Huayu and Jiangsu Financial
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tibet and Jiangsu is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Tibet Huayu and Jiangsu Financial
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.67 times more return on investment than Jiangsu Financial. However, Tibet Huayu is 1.67 times more volatile than Jiangsu Financial Leasing. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.02 per unit of risk. If you would invest 1,199 in Tibet Huayu Mining on October 26, 2024 and sell it today you would earn a total of 122.00 from holding Tibet Huayu Mining or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Tibet Huayu Mining |
| Jiangsu Financial Leasing |
Tibet Huayu and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Jiangsu Financial
The main advantage of trading using opposite Tibet Huayu and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Jiangsu Financial 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 Financial will offset losses from the drop in Jiangsu Financial's long position.| Tibet Huayu vs. Allmed Medical Products | Tibet Huayu vs. Wuhan Hvsen Biotechnology | Tibet Huayu vs. Double Medical Technology | Tibet Huayu vs. Sichuan Hebang Biotechnology |
| Jiangsu Financial vs. Cloud Live Technology | Jiangsu Financial vs. Nanjing Putian Telecommunications | Jiangsu Financial vs. Shenzhen Coship Electronics | Jiangsu Financial vs. Shenzhen Hifuture Electric |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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