Correlation Between Shenzhen Hifuture and Tianjin Realty
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Hifuture Electric and Tianjin Realty Development, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Tianjin Realty.
Diversification Opportunities for Shenzhen Hifuture and Tianjin Realty
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Tianjin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric 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 Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Tianjin Realty go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Tianjin Realty
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Tianjin Realty. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.81 times less risky than Tianjin Realty. The stock trades about -0.17 of its potential returns per unit of risk. The Tianjin Realty Development is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 272.00 in Tianjin Realty Development on November 30, 2024 and sell it today you would lose (27.00) from holding Tianjin Realty Development or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Tianjin Realty Development
Performance |
| Timeline |
| Shenzhen Hifuture |
| Tianjin Realty Devel |
Shenzhen Hifuture and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Tianjin Realty
The main advantage of trading using opposite Shenzhen Hifuture and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. China Publishing Media | Shenzhen Hifuture vs. HaiXin Foods Co | Shenzhen Hifuture vs. Beijing Kaiwen Education | Shenzhen Hifuture vs. Zhejiang Publishing Media |
| Tianjin Realty vs. Nanxing Furniture Machinery | Tianjin Realty vs. Hangzhou Zhongya Machinery | Tianjin Realty vs. Qijing Machinery | Tianjin Realty vs. Long Yuan Construction |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |