Correlation Between Tianshui Huatian and Haima Automobile
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By analyzing existing cross correlation between Tianshui Huatian Technology and Haima Automobile Group, you can compare the effects of market volatilities on Tianshui Huatian and Haima Automobile 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 Tianshui Huatian with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Haima Automobile.
Diversification Opportunities for Tianshui Huatian and Haima Automobile
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshui and Haima is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Tianshui Huatian 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 Tianshui Huatian Technology are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Haima Automobile go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Haima Automobile
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.37 times more return on investment than Haima Automobile. However, Tianshui Huatian Technology is 2.7 times less risky than Haima Automobile. It trades about 0.14 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.01 per unit of risk. If you would invest 1,166 in Tianshui Huatian Technology on September 26, 2024 and sell it today you would earn a total of 43.00 from holding Tianshui Huatian Technology or generate 3.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tianshui Huatian Technology vs. Haima Automobile Group
Performance |
Timeline |
Tianshui Huatian Tec |
Haima Automobile |
Tianshui Huatian and Haima Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianshui Huatian and Haima Automobile
The main advantage of trading using opposite Tianshui Huatian and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.Tianshui Huatian vs. Ming Yang Smart | Tianshui Huatian vs. 159681 | Tianshui Huatian vs. 159005 | Tianshui Huatian vs. Loctek Ergonomic Technology |
Haima Automobile vs. New China Life | Haima Automobile vs. Ming Yang Smart | Haima Automobile vs. 159681 | Haima Automobile vs. 159005 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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