Correlation Between Shenzhen Glory and Tianjin Ruixin
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By analyzing existing cross correlation between Shenzhen Glory Medical and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Shenzhen Glory and Tianjin Ruixin 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 Glory with a short position of Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Tianjin Ruixin.
Diversification Opportunities for Shenzhen Glory and Tianjin Ruixin
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Tianjin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology and Shenzhen Glory 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 Glory Medical are associated (or correlated) with Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Tianjin Ruixin
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to under-perform the Tianjin Ruixin. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Glory Medical is 1.45 times less risky than Tianjin Ruixin. The stock trades about -0.4 of its potential returns per unit of risk. The Tianjin Ruixin Technology is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 1,921 in Tianjin Ruixin Technology on October 17, 2024 and sell it today you would lose (430.00) from holding Tianjin Ruixin Technology or give up 22.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Tianjin Ruixin Technology
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Tianjin Ruixin Technology |
Shenzhen Glory and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Tianjin Ruixin
The main advantage of trading using opposite Shenzhen Glory and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Tianjin Ruixin 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 Ruixin will offset losses from the drop in Tianjin Ruixin's long position.| Shenzhen Glory vs. Guangdong Jingyi Metal | Shenzhen Glory vs. Suzhou Industrial Park | Shenzhen Glory vs. Anhui Transport Consulting | Shenzhen Glory vs. Tongling Nonferrous Metals |
| Tianjin Ruixin vs. Shenzhen Glory Medical | Tianjin Ruixin vs. Qingdao Haier Biomedical | Tianjin Ruixin vs. Allwin Telecommunication Co | Tianjin Ruixin vs. Tongyu Communication |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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