Correlation Between Bohai Leasing and Tianjin Realty
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By analyzing existing cross correlation between Bohai Leasing Co and Tianjin Realty Development, you can compare the effects of market volatilities on Bohai Leasing and Tianjin Realty 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 Bohai Leasing with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Tianjin Realty.
Diversification Opportunities for Bohai Leasing and Tianjin Realty
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bohai and Tianjin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Tianjin Realty go up and down completely randomly.
Pair Corralation between Bohai Leasing and Tianjin Realty
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 0.42 times more return on investment than Tianjin Realty. However, Bohai Leasing Co is 2.41 times less risky than Tianjin Realty. It trades about -0.45 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about -0.35 per unit of risk. If you would invest 402.00 in Bohai Leasing Co on October 16, 2024 and sell it today you would lose (62.00) from holding Bohai Leasing Co or give up 15.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Tianjin Realty Development
Performance |
| Timeline |
| Bohai Leasing |
| Tianjin Realty Devel |
Bohai Leasing and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Tianjin Realty
The main advantage of trading using opposite Bohai Leasing and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Tianjin Realty 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 Realty will offset losses from the drop in Tianjin Realty's long position.| Bohai Leasing vs. Runjian Communication Co | Bohai Leasing vs. Chengdu Xinzhu RoadBridge | Bohai Leasing vs. Hunan TV Broadcast | Bohai Leasing vs. Nanjing Putian Telecommunications |
| Tianjin Realty vs. Ligao Foods CoLtd | Tianjin Realty vs. Bohai Leasing Co | Tianjin Realty vs. Youyou Foods Co | Tianjin Realty vs. Jiangnan Mould Plastic |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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