Correlation Between Beijing SPC and Tianjin Realty
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By analyzing existing cross correlation between Beijing SPC Environment and Tianjin Realty Development, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Tianjin Realty.
Diversification Opportunities for Beijing SPC and Tianjin Realty
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Tianjin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment 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 Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Tianjin Realty go up and down completely randomly.
Pair Corralation between Beijing SPC and Tianjin Realty
Assuming the 90 days trading horizon Beijing SPC Environment is expected to generate 0.38 times more return on investment than Tianjin Realty. However, Beijing SPC Environment is 2.66 times less risky than Tianjin Realty. It trades about 0.06 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about -0.04 per unit of risk. If you would invest 417.00 in Beijing SPC Environment on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Beijing SPC Environment or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Tianjin Realty Development
Performance |
| Timeline |
| Beijing SPC Environment |
| Tianjin Realty Devel |
Beijing SPC and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Tianjin Realty
The main advantage of trading using opposite Beijing SPC and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Zhejiang Yayi Metal | Beijing SPC vs. Zijin Mining Group | Beijing SPC vs. Uroica Mining Safety | Beijing SPC vs. Ningbo Thermal Power |
| Tianjin Realty vs. Jiangxi JDL Environmental | Tianjin Realty vs. Duzhe Publishing Media | Tianjin Realty vs. Beijing SPC Environment | Tianjin Realty vs. Heilongjiang Publishing Media |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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