Correlation Between Ye Chiu and Tibet Huayu
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By analyzing existing cross correlation between Ye Chiu Metal and Tibet Huayu Mining, you can compare the effects of market volatilities on Ye Chiu and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Tibet Huayu.
Diversification Opportunities for Ye Chiu and Tibet Huayu
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 601388 and Tibet is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Ye Chiu i.e., Ye Chiu and Tibet Huayu go up and down completely randomly.
Pair Corralation between Ye Chiu and Tibet Huayu
Assuming the 90 days trading horizon Ye Chiu is expected to generate 47.43 times less return on investment than Tibet Huayu. But when comparing it to its historical volatility, Ye Chiu Metal is 1.4 times less risky than Tibet Huayu. It trades about 0.01 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,231 in Tibet Huayu Mining on December 3, 2024 and sell it today you would earn a total of 295.00 from holding Tibet Huayu Mining or generate 23.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Tibet Huayu Mining
Performance |
| Timeline |
| Ye Chiu Metal |
| Tibet Huayu Mining |
Ye Chiu and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Tibet Huayu
The main advantage of trading using opposite Ye Chiu and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Ye Chiu vs. Anhui Deli Household | ||
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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.
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