Correlation Between Shenzhen MYS and Tianjin Realty
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Tianjin Realty Development, you can compare the effects of market volatilities on Shenzhen MYS 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 MYS with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Tianjin Realty.
Diversification Opportunities for Shenzhen MYS and Tianjin Realty
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Tianjin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 MYS 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 MYS Environmental 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 MYS i.e., Shenzhen MYS and Tianjin Realty go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Tianjin Realty
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 0.69 times more return on investment than Tianjin Realty. However, Shenzhen MYS Environmental is 1.45 times less risky than Tianjin Realty. It trades about 0.02 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.01 per unit of risk. If you would invest 315.00 in Shenzhen MYS Environmental on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen MYS Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Tianjin Realty Development
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Tianjin Realty Devel |
Shenzhen MYS and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Tianjin Realty
The main advantage of trading using opposite Shenzhen MYS and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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 MYS vs. Songz Automobile Air | Shenzhen MYS vs. Gansu Jiu Steel | Shenzhen MYS vs. Haima Automobile Group | Shenzhen MYS vs. Telling Telecommunication Holding |
| Tianjin Realty vs. RoadMain T Co | Tianjin Realty vs. Eit Environmental Development | Tianjin Realty vs. Shaanxi Broadcast TV | Tianjin Realty vs. Shenzhen MYS Environmental |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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