Correlation Between Sinosteel Engineering and Tianjin Capital
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By analyzing existing cross correlation between Sinosteel Engineering and and Tianjin Capital Environmental, you can compare the effects of market volatilities on Sinosteel Engineering and Tianjin Capital 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 Sinosteel Engineering with a short position of Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Tianjin Capital.
Diversification Opportunities for Sinosteel Engineering and Tianjin Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Tianjin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Tianjin Capital go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Tianjin Capital
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 1.45 times more return on investment than Tianjin Capital. However, Sinosteel Engineering is 1.45 times more volatile than Tianjin Capital Environmental. It trades about 0.2 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.03 per unit of risk. If you would invest 649.00 in Sinosteel Engineering and on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Sinosteel Engineering and or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Sinosteel Engineering and |
| Tianjin Capital Envi |
Sinosteel Engineering and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Tianjin Capital
The main advantage of trading using opposite Sinosteel Engineering and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Tianjin Capital 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 Capital will offset losses from the drop in Tianjin Capital's long position.| Sinosteel Engineering vs. Industrial Securities Co | Sinosteel Engineering vs. Western Metal Materials | Sinosteel Engineering vs. Shandong Huifa Foodstuff | Sinosteel Engineering vs. Sichuan Yahua Industrial |
| Tianjin Capital vs. Bank of China | Tianjin Capital vs. Kweichow Moutai Co | Tianjin Capital vs. PetroChina Co Ltd | Tianjin Capital vs. Bank of Communications |
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 CEOs Directory module to screen CEOs from public companies around the world.
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