Correlation Between Changchun High and Tianjin LVYIN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun High New and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Changchun High and Tianjin LVYIN 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 Changchun High with a short position of Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and Tianjin LVYIN.
Diversification Opportunities for Changchun High and Tianjin LVYIN
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Tianjin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape and Changchun High 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 Changchun High New are associated (or correlated) with Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Changchun High i.e., Changchun High and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Changchun High and Tianjin LVYIN
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the Tianjin LVYIN. But the stock apears to be less risky and, when comparing its historical volatility, Changchun High New is 1.18 times less risky than Tianjin LVYIN. The stock trades about -0.06 of its potential returns per unit of risk. The Tianjin LVYIN Landscape is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 860.00 in Tianjin LVYIN Landscape on October 14, 2024 and sell it today you would lose (218.00) from holding Tianjin LVYIN Landscape or give up 25.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Changchun High New |
| Tianjin LVYIN Landscape |
Changchun High and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and Tianjin LVYIN
The main advantage of trading using opposite Changchun High and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, Tianjin LVYIN 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 LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Changchun High vs. Tieling Newcity Investment | Changchun High vs. Zhongrun Resources Investment | Changchun High vs. Do Fluoride Chemicals Co | Changchun High vs. Weichai Heavy Machinery |
| Tianjin LVYIN vs. CSSC Offshore Marine | Tianjin LVYIN vs. Guangxi Wuzhou Communications | Tianjin LVYIN vs. State Grid InformationCommunication | Tianjin LVYIN vs. Bomesc Offshore Engineering |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |