Correlation Between Tibet Huayu and Juewei Food
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By analyzing existing cross correlation between Tibet Huayu Mining and Juewei Food Co, you can compare the effects of market volatilities on Tibet Huayu and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Juewei Food.
Diversification Opportunities for Tibet Huayu and Juewei Food
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tibet and Juewei is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Juewei Food go up and down completely randomly.
Pair Corralation between Tibet Huayu and Juewei Food
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.09 times more return on investment than Juewei Food. However, Tibet Huayu is 1.09 times more volatile than Juewei Food Co. It trades about 0.1 of its potential returns per unit of risk. Juewei Food Co is currently generating about 0.07 per unit of risk. If you would invest 1,249 in Tibet Huayu Mining on August 28, 2024 and sell it today you would earn a total of 101.00 from holding Tibet Huayu Mining or generate 8.09% 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. Juewei Food Co
Performance |
| Timeline |
| Tibet Huayu Mining |
| Juewei Food |
Tibet Huayu and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Juewei Food
The main advantage of trading using opposite Tibet Huayu and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food'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 |
| Juewei Food vs. Uxi Unicomp Technology | Juewei Food vs. Kunshan Guoli Electronic | Juewei Food vs. Success Electronics | Juewei Food vs. ROPEOK Technology Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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