Correlation Between Hengli Industrial and Tianjin Silvery
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By analyzing existing cross correlation between Hengli Industrial Development and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Tianjin Silvery.
Diversification Opportunities for Hengli Industrial and Tianjin Silvery
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Tianjin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development 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 Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Hengli Industrial and Tianjin Silvery
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Tianjin Silvery. But the stock apears to be less risky and, when comparing its historical volatility, Hengli Industrial Development is 1.25 times less risky than Tianjin Silvery. The stock trades about -0.16 of its potential returns per unit of risk. The Tianjin Silvery Dragon is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Tianjin Silvery Dragon on September 24, 2024 and sell it today you would earn a total of 67.00 from holding Tianjin Silvery Dragon or generate 12.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hengli Industrial Development vs. Tianjin Silvery Dragon
Performance |
Timeline |
Hengli Industrial |
Tianjin Silvery Dragon |
Hengli Industrial and Tianjin Silvery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengli Industrial and Tianjin Silvery
The main advantage of trading using opposite Hengli Industrial and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.Hengli Industrial vs. China Life Insurance | Hengli Industrial vs. Cinda Securities Co | Hengli Industrial vs. Piotech Inc A | Hengli Industrial vs. Dongxing Sec Co |
Tianjin Silvery vs. Jiangxi Selon Industrial | Tianjin Silvery vs. Hainan Mining Co | Tianjin Silvery vs. Guangdong Jingyi Metal | Tianjin Silvery vs. Hengli Industrial Development |
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 Stocks Directory module to find actively traded stocks across global markets.
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