Correlation Between Tianjin Silvery and Hygon Information
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Hygon Information Technology, you can compare the effects of market volatilities on Tianjin Silvery and Hygon Information 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 Tianjin Silvery with a short position of Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Hygon Information.
Diversification Opportunities for Tianjin Silvery and Hygon Information
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Hygon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information and Tianjin Silvery 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 Tianjin Silvery Dragon are associated (or correlated) with Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Hygon Information go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Hygon Information
Assuming the 90 days trading horizon Tianjin Silvery is expected to generate 3.78 times less return on investment than Hygon Information. But when comparing it to its historical volatility, Tianjin Silvery Dragon is 1.06 times less risky than Hygon Information. It trades about 0.05 of its potential returns per unit of risk. Hygon Information Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 12,899 in Hygon Information Technology on October 10, 2024 and sell it today you would earn a total of 2,090 from holding Hygon Information Technology or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Hygon Information Technology
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Hygon Information |
Tianjin Silvery and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Hygon Information
The main advantage of trading using opposite Tianjin Silvery and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Tianjin Silvery vs. Zijin Mining Group | Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Baoshan Iron Steel | Tianjin Silvery vs. Shandong Gold Mining |
| Hygon Information vs. Shanghai Ziyan Foods | Hygon Information vs. Xiwang Foodstuffs Co | Hygon Information vs. Qtone Education Group | Hygon Information vs. Gan Yuan Foods |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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