Correlation Between Tibet Huayu and Sailun Jinyu
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By analyzing existing cross correlation between Tibet Huayu Mining and Sailun Jinyu Group, you can compare the effects of market volatilities on Tibet Huayu and Sailun Jinyu 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 Tibet Huayu with a short position of Sailun Jinyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Sailun Jinyu.
Diversification Opportunities for Tibet Huayu and Sailun Jinyu
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tibet and Sailun is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Sailun Jinyu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sailun Jinyu Group and Tibet Huayu 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 Tibet Huayu Mining are associated (or correlated) with Sailun Jinyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sailun Jinyu Group has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Sailun Jinyu go up and down completely randomly.
Pair Corralation between Tibet Huayu and Sailun Jinyu
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to generate 1.66 times more return on investment than Sailun Jinyu. However, Tibet Huayu is 1.66 times more volatile than Sailun Jinyu Group. It trades about 0.04 of its potential returns per unit of risk. Sailun Jinyu Group is currently generating about 0.02 per unit of risk. If you would invest 1,244 in Tibet Huayu Mining on September 23, 2024 and sell it today you would earn a total of 133.00 from holding Tibet Huayu Mining or generate 10.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tibet Huayu Mining vs. Sailun Jinyu Group
Performance |
Timeline |
Tibet Huayu Mining |
Sailun Jinyu Group |
Tibet Huayu and Sailun Jinyu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tibet Huayu and Sailun Jinyu
The main advantage of trading using opposite Tibet Huayu and Sailun Jinyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Sailun Jinyu 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 Sailun Jinyu will offset losses from the drop in Sailun Jinyu's long position.Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
Sailun Jinyu vs. Shenzhen Silver Basis | Sailun Jinyu vs. Jinhui Mining Co | Sailun Jinyu vs. Chenzhou Jingui Silver | Sailun Jinyu vs. Tibet Huayu 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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