Correlation Between Ye Chiu and Tianshui Huatian
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By analyzing existing cross correlation between Ye Chiu Metal and Tianshui Huatian Technology, you can compare the effects of market volatilities on Ye Chiu and Tianshui Huatian 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 Ye Chiu with a short position of Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Tianshui Huatian.
Diversification Opportunities for Ye Chiu and Tianshui Huatian
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between 601388 and Tianshui is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Ye Chiu i.e., Ye Chiu and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Ye Chiu and Tianshui Huatian
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.5 times more return on investment than Tianshui Huatian. However, Ye Chiu is 1.5 times more volatile than Tianshui Huatian Technology. It trades about -0.11 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.25 per unit of risk. If you would invest 254.00 in Ye Chiu Metal on January 10, 2025 and sell it today you would lose (24.00) from holding Ye Chiu Metal or give up 9.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ye Chiu Metal vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Ye Chiu Metal |
| Tianshui Huatian Tec |
Ye Chiu and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Tianshui Huatian
The main advantage of trading using opposite Ye Chiu and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| Ye Chiu vs. Miracll Chemicals Co | Ye Chiu vs. Dhc Software Co | Ye Chiu vs. Dosilicon Co | Ye Chiu vs. Montage Technology Co |
| Tianshui Huatian vs. Cofco Biochemical Anhui | Tianshui Huatian vs. Hengli Petrochemical Co | Tianshui Huatian vs. Jilin Chemical Fibre | Tianshui Huatian vs. INKON Life 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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