Correlation Between Beijing Shanghai and Tianshui Huatian
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By analyzing existing cross correlation between Beijing Shanghai High Speed and Tianshui Huatian Technology, you can compare the effects of market volatilities on Beijing Shanghai 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 Beijing Shanghai with a short position of Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shanghai and Tianshui Huatian.
Diversification Opportunities for Beijing Shanghai and Tianshui Huatian
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Tianshui is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shanghai High Speed 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 Beijing Shanghai 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 Beijing Shanghai High Speed 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 Beijing Shanghai i.e., Beijing Shanghai and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Beijing Shanghai and Tianshui Huatian
Assuming the 90 days trading horizon Beijing Shanghai High Speed is expected to generate 0.76 times more return on investment than Tianshui Huatian. However, Beijing Shanghai High Speed is 1.32 times less risky than Tianshui Huatian. It trades about 0.38 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.24 per unit of risk. If you would invest 557.00 in Beijing Shanghai High Speed on September 14, 2024 and sell it today you would earn a total of 80.00 from holding Beijing Shanghai High Speed or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shanghai High Speed vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Beijing Shanghai High |
| Tianshui Huatian Tec |
Beijing Shanghai and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shanghai and Tianshui Huatian
The main advantage of trading using opposite Beijing Shanghai and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shanghai 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.| Beijing Shanghai vs. Tianshui Huatian Technology | Beijing Shanghai vs. Shenyang Chemical Industry | Beijing Shanghai vs. Suzhou Douson Drilling | Beijing Shanghai vs. Cofco Biochemical Anhui |
| Tianshui Huatian vs. Nanjing Putian Telecommunications | Tianshui Huatian vs. Tianjin Realty Development | Tianshui Huatian vs. Kangyue Technology Co | Tianshui Huatian vs. Shenzhen Hifuture Electric |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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