Correlation Between Guangzhou Seagull and Tianjin Realty
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Tianjin Realty Development, you can compare the effects of market volatilities on Guangzhou Seagull and Tianjin Realty 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 Guangzhou Seagull with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Tianjin Realty.
Diversification Opportunities for Guangzhou Seagull and Tianjin Realty
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Tianjin is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel and Guangzhou Seagull 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 Guangzhou Seagull Kitchen are associated (or correlated) with Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Tianjin Realty go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Tianjin Realty
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 0.87 times more return on investment than Tianjin Realty. However, Guangzhou Seagull Kitchen is 1.14 times less risky than Tianjin Realty. It trades about 0.01 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about -0.46 per unit of risk. If you would invest 286.00 in Guangzhou Seagull Kitchen on November 3, 2024 and sell it today you would lose (1.00) from holding Guangzhou Seagull Kitchen or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Tianjin Realty Development
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Tianjin Realty Devel |
Guangzhou Seagull and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Tianjin Realty
The main advantage of trading using opposite Guangzhou Seagull and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Tianjin Realty 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 Realty will offset losses from the drop in Tianjin Realty's long position.| Guangzhou Seagull vs. Dazhong Transportation Group | Guangzhou Seagull vs. Jiamei Food Packaging | Guangzhou Seagull vs. RoadMain T Co | Guangzhou Seagull vs. HaiXin Foods Co |
| Tianjin Realty vs. China Aluminum International | Tianjin Realty vs. Jiugui Liquor Co | Tianjin Realty vs. ZYF Lopsking Aluminum | Tianjin Realty vs. Suzhou Douson Drilling |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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