Correlation Between Hefei Metalforming and Tianjin Silvery
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By analyzing existing cross correlation between Hefei Metalforming Mach and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Hefei Metalforming and Tianjin Silvery 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 Hefei Metalforming with a short position of Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Tianjin Silvery.
Diversification Opportunities for Hefei Metalforming and Tianjin Silvery
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hefei and Tianjin is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Tianjin Silvery
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 1.76 times less return on investment than Tianjin Silvery. In addition to that, Hefei Metalforming is 1.05 times more volatile than Tianjin Silvery Dragon. It trades about 0.07 of its total potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about 0.13 per unit of volatility. If you would invest 426.00 in Tianjin Silvery Dragon on October 26, 2024 and sell it today you would earn a total of 217.00 from holding Tianjin Silvery Dragon or generate 50.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Tianjin Silvery Dragon
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Tianjin Silvery Dragon |
Hefei Metalforming and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Tianjin Silvery
The main advantage of trading using opposite Hefei Metalforming and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery's long position.| Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. China Petroleum Chemical | Hefei Metalforming vs. China Construction Bank |
| Tianjin Silvery vs. Tibet Huayu Mining | Tianjin Silvery vs. North Copper Shanxi | Tianjin Silvery vs. Zhejiang Yongjin Metal | Tianjin Silvery vs. Hefei Metalforming Mach |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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