Correlation Between Tibet Huayu and Touchstone International
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By analyzing existing cross correlation between Tibet Huayu Mining and Touchstone International Medical, you can compare the effects of market volatilities on Tibet Huayu and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Touchstone International.
Diversification Opportunities for Tibet Huayu and Touchstone International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tibet and Touchstone is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Touchstone International go up and down completely randomly.
Pair Corralation between Tibet Huayu and Touchstone International
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.31 times more return on investment than Touchstone International. However, Tibet Huayu is 1.31 times more volatile than Touchstone International Medical. It trades about 0.03 of its potential returns per unit of risk. Touchstone International Medical is currently generating about 0.0 per unit of risk. If you would invest 972.00 in Tibet Huayu Mining on October 14, 2024 and sell it today you would earn a total of 231.00 from holding Tibet Huayu Mining or generate 23.77% 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. Touchstone International Medic
Performance |
| Timeline |
| Tibet Huayu Mining |
| Touchstone International |
Tibet Huayu and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Touchstone International
The main advantage of trading using opposite Tibet Huayu and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International'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 |
| Touchstone International vs. Shengda Mining Co | Touchstone International vs. Guangdong Jingyi Metal | Touchstone International vs. Xinjiang Baodi Mining | Touchstone International vs. Tibet Huayu Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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