Correlation Between Tianjin Yiyi and Nanjing OLO
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By analyzing existing cross correlation between Tianjin Yiyi Hygiene and Nanjing OLO Home, you can compare the effects of market volatilities on Tianjin Yiyi and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Yiyi and Nanjing OLO.
Diversification Opportunities for Tianjin Yiyi and Nanjing OLO
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Nanjing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Yiyi Hygiene and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Tianjin Yiyi i.e., Tianjin Yiyi and Nanjing OLO go up and down completely randomly.
Pair Corralation between Tianjin Yiyi and Nanjing OLO
Assuming the 90 days trading horizon Tianjin Yiyi Hygiene is expected to generate 1.83 times more return on investment than Nanjing OLO. However, Tianjin Yiyi is 1.83 times more volatile than Nanjing OLO Home. It trades about 0.17 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about 0.2 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. Nanjing OLO Home
Performance |
| Timeline |
| Tianjin Yiyi Hygiene |
| Nanjing OLO Home |
Tianjin Yiyi and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Yiyi and Nanjing OLO
The main advantage of trading using opposite Tianjin Yiyi and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Yiyi position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO'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 |
| Nanjing OLO vs. Lutian Machinery Co | Nanjing OLO vs. PetroChina Co Ltd | Nanjing OLO vs. Bank of China | Nanjing OLO 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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