Correlation Between Tibet Huayu and Chongqing Sokon
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By analyzing existing cross correlation between Tibet Huayu Mining and Chongqing Sokon Ind, you can compare the effects of market volatilities on Tibet Huayu and Chongqing Sokon 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 Chongqing Sokon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Chongqing Sokon.
Diversification Opportunities for Tibet Huayu and Chongqing Sokon
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tibet and Chongqing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Chongqing Sokon Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sokon Ind 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 Chongqing Sokon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sokon Ind has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Chongqing Sokon go up and down completely randomly.
Pair Corralation between Tibet Huayu and Chongqing Sokon
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 0.76 times more return on investment than Chongqing Sokon. However, Tibet Huayu Mining is 1.31 times less risky than Chongqing Sokon. It trades about 0.01 of its potential returns per unit of risk. Chongqing Sokon Ind is currently generating about -0.03 per unit of risk. If you would invest 1,510 in Tibet Huayu Mining on September 12, 2024 and sell it today you would lose (6.00) from holding Tibet Huayu Mining or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Chongqing Sokon Ind
Performance |
| Timeline |
| Tibet Huayu Mining |
| Chongqing Sokon Ind |
Tibet Huayu and Chongqing Sokon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Chongqing Sokon
The main advantage of trading using opposite Tibet Huayu and Chongqing Sokon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Chongqing Sokon 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 Chongqing Sokon will offset losses from the drop in Chongqing Sokon's long position.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Rongsheng Petrochemical Co |
| Chongqing Sokon vs. Saurer Intelligent Technology | Chongqing Sokon vs. GRINM Semiconductor Materials | Chongqing Sokon vs. Niutech Environment Technology | Chongqing Sokon vs. Yuan Longping High tech |
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 Stocks Directory module to find actively traded stocks across global markets.
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