Correlation Between Eastern Communications and Tianshui Huatian
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By analyzing existing cross correlation between Eastern Communications Co and Tianshui Huatian Technology, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Tianshui Huatian.
Diversification Opportunities for Eastern Communications and Tianshui Huatian
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Tianshui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co 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 Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Eastern Communications and Tianshui Huatian
Assuming the 90 days trading horizon Eastern Communications Co is expected to generate 0.7 times more return on investment than Tianshui Huatian. However, Eastern Communications Co is 1.43 times less risky than Tianshui Huatian. It trades about 0.05 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.16 per unit of risk. If you would invest 42.00 in Eastern Communications Co on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Eastern Communications Co or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Eastern Communications |
| Tianshui Huatian Tec |
Eastern Communications and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Tianshui Huatian
The main advantage of trading using opposite Eastern Communications and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
| Tianshui Huatian vs. Industrial and Commercial | Tianshui Huatian vs. Kweichow Moutai Co | Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Mobile Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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