Correlation Between Tianshui Huatian and Hubei Forbon
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By analyzing existing cross correlation between Tianshui Huatian Technology and Hubei Forbon Technology, you can compare the effects of market volatilities on Tianshui Huatian and Hubei Forbon 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 Hubei Forbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Hubei Forbon.
Diversification Opportunities for Tianshui Huatian and Hubei Forbon
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianshui and Hubei is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Hubei Forbon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Forbon Technology 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 Hubei Forbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Forbon Technology has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Hubei Forbon go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Hubei Forbon
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 0.3 times more return on investment than Hubei Forbon. However, Tianshui Huatian Technology is 3.28 times less risky than Hubei Forbon. It trades about 0.14 of its potential returns per unit of risk. Hubei Forbon Technology is currently generating about 0.03 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tianshui Huatian Technology vs. Hubei Forbon Technology
Performance |
Timeline |
Tianshui Huatian Tec |
Hubei Forbon Technology |
Tianshui Huatian and Hubei Forbon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianshui Huatian and Hubei Forbon
The main advantage of trading using opposite Tianshui Huatian and Hubei Forbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Hubei Forbon 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 Hubei Forbon will offset losses from the drop in Hubei Forbon's long position.Tianshui Huatian vs. Ming Yang Smart | Tianshui Huatian vs. 159681 | Tianshui Huatian vs. 159005 | Tianshui Huatian vs. Loctek Ergonomic Technology |
Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Shandong Gold Mining |
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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