Correlation Between Iflytek and Tianjin Hi
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By analyzing existing cross correlation between Iflytek Co and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Iflytek and Tianjin Hi 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 Iflytek with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iflytek and Tianjin Hi.
Diversification Opportunities for Iflytek and Tianjin Hi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iflytek and Tianjin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Iflytek Co and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech and Iflytek 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 Iflytek Co are associated (or correlated) with Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Iflytek i.e., Iflytek and Tianjin Hi go up and down completely randomly.
Pair Corralation between Iflytek and Tianjin Hi
Assuming the 90 days trading horizon Iflytek is expected to generate 1.9 times less return on investment than Tianjin Hi. But when comparing it to its historical volatility, Iflytek Co is 1.09 times less risky than Tianjin Hi. It trades about 0.07 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 217.00 in Tianjin Hi Tech Development on September 3, 2024 and sell it today you would earn a total of 106.00 from holding Tianjin Hi Tech Development or generate 48.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iflytek Co vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Iflytek |
| Tianjin Hi Tech |
Iflytek and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iflytek and Tianjin Hi
The main advantage of trading using opposite Iflytek and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iflytek position performs unexpectedly, Tianjin Hi 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 Hi will offset losses from the drop in Tianjin Hi's long position.| Iflytek vs. China National Software | Iflytek vs. Hangzhou Pinming Software | Iflytek vs. Everdisplay Optronics Shanghai | Iflytek vs. China Sports Industry |
| Tianjin Hi vs. Xinjiang Communications Construction | Tianjin Hi vs. CICT Mobile Communication | Tianjin Hi vs. Shandong Homey Aquatic | Tianjin Hi vs. Hunan Mendale Hometextile |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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