Correlation Between Tianjin Yiyi and Xilinmen Furniture
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By analyzing existing cross correlation between Tianjin Yiyi Hygiene and Xilinmen Furniture Co, you can compare the effects of market volatilities on Tianjin Yiyi and Xilinmen Furniture 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 Tianjin Yiyi with a short position of Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Yiyi and Xilinmen Furniture.
Diversification Opportunities for Tianjin Yiyi and Xilinmen Furniture
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Xilinmen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Yiyi Hygiene and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture and Tianjin Yiyi 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 Tianjin Yiyi Hygiene are associated (or correlated) with Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Tianjin Yiyi i.e., Tianjin Yiyi and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Tianjin Yiyi and Xilinmen Furniture
Assuming the 90 days trading horizon Tianjin Yiyi Hygiene is expected to generate 1.49 times more return on investment than Xilinmen Furniture. However, Tianjin Yiyi is 1.49 times more volatile than Xilinmen Furniture Co. It trades about 0.17 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about -0.06 per unit of risk. If you would invest 1,599 in Tianjin Yiyi Hygiene on September 12, 2024 and sell it today you would earn a total of 194.00 from holding Tianjin Yiyi Hygiene or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Yiyi Hygiene vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Tianjin Yiyi Hygiene |
| Xilinmen Furniture |
Tianjin Yiyi and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Yiyi and Xilinmen Furniture
The main advantage of trading using opposite Tianjin Yiyi and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Yiyi position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Tianjin Yiyi vs. Nuode Investment Co | Tianjin Yiyi vs. Kunwu Jiuding Investment | Tianjin Yiyi vs. Harvest Fund Management | Tianjin Yiyi vs. Metro Investment Development |
| Xilinmen Furniture vs. Lutian Machinery Co | Xilinmen Furniture vs. PetroChina Co Ltd | Xilinmen Furniture vs. Bank of China | Xilinmen Furniture vs. Gansu Jiu Steel |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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