Correlation Between Tibet Huayu and Ningbo Thermal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tibet Huayu Mining and Ningbo Thermal Power, you can compare the effects of market volatilities on Tibet Huayu and Ningbo Thermal 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 Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Ningbo Thermal.
Diversification Opportunities for Tibet Huayu and Ningbo Thermal
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tibet and Ningbo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power 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 Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Ningbo Thermal go up and down completely randomly.
Pair Corralation between Tibet Huayu and Ningbo Thermal
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 0.87 times more return on investment than Ningbo Thermal. However, Tibet Huayu Mining is 1.15 times less risky than Ningbo Thermal. It trades about -0.09 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about -0.33 per unit of risk. If you would invest 1,328 in Tibet Huayu Mining on October 22, 2024 and sell it today you would lose (52.00) from holding Tibet Huayu Mining or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Ningbo Thermal Power
Performance |
| Timeline |
| Tibet Huayu Mining |
| Ningbo Thermal Power |
Tibet Huayu and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Ningbo Thermal
The main advantage of trading using opposite Tibet Huayu and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Ningbo Thermal 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 Ningbo Thermal will offset losses from the drop in Ningbo Thermal's long position.| Tibet Huayu vs. Hainan Airlines Co | Tibet Huayu vs. Dawning Information Industry | Tibet Huayu vs. Tongding Interconnection Information | Tibet Huayu vs. Hygon Information Technology |
| Ningbo Thermal vs. Cicc Fund Management | Ningbo Thermal vs. Heilongjiang Transport Development | Ningbo Thermal vs. Shanghai Yanpu Metal | Ningbo Thermal vs. Xinjiang Sailing Information |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |