Correlation Between Tibet Huayu and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tibet Huayu Mining and China Railway Construction, you can compare the effects of market volatilities on Tibet Huayu and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and China Railway.
Diversification Opportunities for Tibet Huayu and China Railway
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tibet and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and China Railway go up and down completely randomly.
Pair Corralation between Tibet Huayu and China Railway
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.48 times more return on investment than China Railway. However, Tibet Huayu is 1.48 times more volatile than China Railway Construction. It trades about 0.03 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.03 per unit of risk. If you would invest 1,234 in Tibet Huayu Mining on September 4, 2024 and sell it today you would earn a total of 231.00 from holding Tibet Huayu Mining or generate 18.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. China Railway Construction
Performance |
| Timeline |
| Tibet Huayu Mining |
| China Railway Constr |
Tibet Huayu and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and China Railway
The main advantage of trading using opposite Tibet Huayu and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
| China Railway vs. Jiangxi Hengda Hi Tech | China Railway vs. Eastern Communications Co | China Railway vs. Northking Information Technology | China Railway vs. Sichuan Jinshi 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |