Correlation Between Tibet Huayu and OBiO Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tibet Huayu Mining and OBiO Technology Corp, you can compare the effects of market volatilities on Tibet Huayu and OBiO Technology 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 OBiO Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and OBiO Technology.
Diversification Opportunities for Tibet Huayu and OBiO Technology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tibet and OBiO is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and OBiO Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBiO Technology Corp 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 OBiO Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBiO Technology Corp has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and OBiO Technology go up and down completely randomly.
Pair Corralation between Tibet Huayu and OBiO Technology
Assuming the 90 days trading horizon Tibet Huayu is expected to generate 2.62 times less return on investment than OBiO Technology. In addition to that, Tibet Huayu is 1.08 times more volatile than OBiO Technology Corp. It trades about 0.01 of its total potential returns per unit of risk. OBiO Technology Corp is currently generating about 0.02 per unit of volatility. If you would invest 541.00 in OBiO Technology Corp on September 1, 2024 and sell it today you would earn a total of 11.00 from holding OBiO Technology Corp or generate 2.03% 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. OBiO Technology Corp
Performance |
| Timeline |
| Tibet Huayu Mining |
| OBiO Technology Corp |
Tibet Huayu and OBiO Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and OBiO Technology
The main advantage of trading using opposite Tibet Huayu and OBiO Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, OBiO Technology 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 OBiO Technology will offset losses from the drop in OBiO Technology'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 |
| OBiO Technology vs. Shandong Polymer Biochemicals | OBiO Technology vs. Focus Media Information | OBiO Technology vs. Yingde Greatchem Chemicals | OBiO Technology vs. Harbin Air Conditioning |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |