Correlation Between Guobo Electronics and Tibet Huayu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guobo Electronics Co and Tibet Huayu Mining, you can compare the effects of market volatilities on Guobo Electronics 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 Guobo Electronics with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guobo Electronics and Tibet Huayu.
Diversification Opportunities for Guobo Electronics and Tibet Huayu
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guobo and Tibet is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guobo Electronics Co 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 Guobo Electronics 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 Guobo Electronics Co 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 Guobo Electronics i.e., Guobo Electronics and Tibet Huayu go up and down completely randomly.
Pair Corralation between Guobo Electronics and Tibet Huayu
Assuming the 90 days trading horizon Guobo Electronics Co is expected to under-perform the Tibet Huayu. But the stock apears to be less risky and, when comparing its historical volatility, Guobo Electronics Co is 1.04 times less risky than Tibet Huayu. The stock trades about -0.19 of its potential returns per unit of risk. The Tibet Huayu Mining is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Tibet Huayu Mining on November 1, 2024 and sell it today you would earn a total of 119.00 from holding Tibet Huayu Mining or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guobo Electronics Co vs. Tibet Huayu Mining
Performance |
| Timeline |
| Guobo Electronics |
| Tibet Huayu Mining |
Guobo Electronics and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guobo Electronics and Tibet Huayu
The main advantage of trading using opposite Guobo Electronics and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guobo Electronics 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.| Guobo Electronics vs. Tibet Huayu Mining | Guobo Electronics vs. Tianjin Silvery Dragon | Guobo Electronics vs. Shenyang Blue Silver | Guobo Electronics vs. Hainan Mining Co |
| Tibet Huayu vs. Silkroad Visual Technology | Tibet Huayu vs. Sichuan Fulin Transportation | Tibet Huayu vs. Hainan Haiqi Transportation | Tibet Huayu vs. Zhengping RoadBridge Constr |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |