Correlation Between Tibet Huayu and Ye Chiu
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By analyzing existing cross correlation between Tibet Huayu Mining and Ye Chiu Metal, you can compare the effects of market volatilities on Tibet Huayu and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Ye Chiu.
Diversification Opportunities for Tibet Huayu and Ye Chiu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tibet and 601388 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Ye Chiu go up and down completely randomly.
Pair Corralation between Tibet Huayu and Ye Chiu
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 2.09 times more return on investment than Ye Chiu. However, Tibet Huayu is 2.09 times more volatile than Ye Chiu Metal. It trades about 0.13 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.05 per unit of risk. If you would invest 1,249 in Tibet Huayu Mining on August 29, 2024 and sell it today you would earn a total of 150.00 from holding Tibet Huayu Mining or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Ye Chiu Metal
Performance |
| Timeline |
| Tibet Huayu Mining |
| Ye Chiu Metal |
Tibet Huayu and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Ye Chiu
The main advantage of trading using opposite Tibet Huayu and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Tibet Huayu vs. GigaDevice SemiconductorBeiji | Tibet Huayu vs. Xiamen Goldenhome Co | Tibet Huayu vs. Nanjing OLO Home | Tibet Huayu vs. Huitong Construction Group |
| Ye Chiu vs. Shandong Gold Mining | Ye Chiu vs. Rongsheng Petrochemical Co | Ye Chiu vs. Inner Mongolia BaoTou | Ye Chiu vs. Jiangxi Ganfeng Lithium |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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