Correlation Between Western Metal and Tjk Machinery
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By analyzing existing cross correlation between Western Metal Materials and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Western Metal and Tjk Machinery 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 Western Metal with a short position of Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Tjk Machinery.
Diversification Opportunities for Western Metal and Tjk Machinery
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Tjk is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin and Western Metal 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 Western Metal Materials are associated (or correlated) with Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Western Metal i.e., Western Metal and Tjk Machinery go up and down completely randomly.
Pair Corralation between Western Metal and Tjk Machinery
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 1.16 times more return on investment than Tjk Machinery. However, Western Metal is 1.16 times more volatile than Tjk Machinery Tianjin. It trades about 0.15 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about -0.11 per unit of risk. If you would invest 1,647 in Western Metal Materials on October 18, 2024 and sell it today you would earn a total of 181.00 from holding Western Metal Materials or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Tjk Machinery Tianjin
Performance |
| Timeline |
| Western Metal Materials |
| Tjk Machinery Tianjin |
Western Metal and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Tjk Machinery
The main advantage of trading using opposite Western Metal and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.| Western Metal vs. Time Publishing and | Western Metal vs. Qingdao Foods Co | Western Metal vs. COL Digital Publishing | Western Metal vs. Juewei Food Co |
| Tjk Machinery vs. Western Metal Materials | Tjk Machinery vs. Malion New Materials | Tjk Machinery vs. Fuda Alloy Materials | Tjk Machinery vs. Uroica Mining Safety |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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