Correlation Between Tianshui Huatian and Gansu Yasheng
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By analyzing existing cross correlation between Tianshui Huatian Technology and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Tianshui Huatian and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshui Huatian and Gansu Yasheng.
Diversification Opportunities for Tianshui Huatian and Gansu Yasheng
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianshui and Gansu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tianshui Huatian Technology and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Tianshui Huatian i.e., Tianshui Huatian and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Tianshui Huatian and Gansu Yasheng
Assuming the 90 days trading horizon Tianshui Huatian Technology is expected to generate 1.48 times more return on investment than Gansu Yasheng. However, Tianshui Huatian is 1.48 times more volatile than Gansu Yasheng Industrial. It trades about 0.22 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.2 per unit of risk. If you would invest 751.00 in Tianshui Huatian Technology on September 8, 2024 and sell it today you would earn a total of 451.00 from holding Tianshui Huatian Technology or generate 60.05% 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. Gansu Yasheng Industrial
Performance |
Timeline |
Tianshui Huatian Tec |
Gansu Yasheng Industrial |
Tianshui Huatian and Gansu Yasheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianshui Huatian and Gansu Yasheng
The main advantage of trading using opposite Tianshui Huatian and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshui Huatian position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.Tianshui Huatian vs. 159681 | Tianshui Huatian vs. 159005 | Tianshui Huatian vs. Loctek Ergonomic Technology | Tianshui Huatian vs. 516220 |
Gansu Yasheng vs. 159681 | Gansu Yasheng vs. 159005 | Gansu Yasheng vs. 516220 | Gansu Yasheng vs. Hunan Nanling Industrial |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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