Correlation Between FSPG Hi and Tianjin Hi
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By analyzing existing cross correlation between FSPG Hi Tech Co and Tianjin Hi Tech Development, you can compare the effects of market volatilities on FSPG Hi and Tianjin Hi 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 FSPG Hi with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Tianjin Hi.
Diversification Opportunities for FSPG Hi and Tianjin Hi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSPG and Tianjin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech and FSPG Hi 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 FSPG Hi Tech Co are associated (or correlated) with Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of FSPG Hi i.e., FSPG Hi and Tianjin Hi go up and down completely randomly.
Pair Corralation between FSPG Hi and Tianjin Hi
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 0.92 times more return on investment than Tianjin Hi. However, FSPG Hi Tech Co is 1.09 times less risky than Tianjin Hi. It trades about 0.05 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.0 per unit of risk. If you would invest 464.00 in FSPG Hi Tech Co on August 29, 2024 and sell it today you would earn a total of 273.00 from holding FSPG Hi Tech Co or generate 58.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| FSPG Hi Tech |
| Tianjin Hi Tech |
FSPG Hi and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Tianjin Hi
The main advantage of trading using opposite FSPG Hi and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Tianjin Hi 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 Hi will offset losses from the drop in Tianjin Hi's long position.| FSPG Hi vs. Iat Automobile Technology | FSPG Hi vs. Wuhan Yangtze Communication | FSPG Hi vs. Shenzhen Kexin Communication | FSPG Hi vs. Haima Automobile Group |
| Tianjin Hi vs. China State Construction | Tianjin Hi vs. Huafa Industrial Co | Tianjin Hi vs. China International Capital | Tianjin Hi vs. Kweichow Moutai Co |
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.
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