Correlation Between Der International and Tianjin LVYIN
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By analyzing existing cross correlation between Der International Home and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Der International and Tianjin LVYIN 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 Der International with a short position of Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Tianjin LVYIN.
Diversification Opportunities for Der International and Tianjin LVYIN
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Der and Tianjin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape and Der International 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 Der International Home are associated (or correlated) with Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Der International i.e., Der International and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Der International and Tianjin LVYIN
Assuming the 90 days trading horizon Der International Home is expected to under-perform the Tianjin LVYIN. In addition to that, Der International is 1.4 times more volatile than Tianjin LVYIN Landscape. It trades about -0.07 of its total potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.05 per unit of volatility. If you would invest 733.00 in Tianjin LVYIN Landscape on September 27, 2024 and sell it today you would lose (38.00) from holding Tianjin LVYIN Landscape or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Der International Home |
| Tianjin LVYIN Landscape |
Der International and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and Tianjin LVYIN
The main advantage of trading using opposite Der International and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International position performs unexpectedly, Tianjin LVYIN 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 LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Der International vs. Youyou Foods Co | Der International vs. Shantou Wanshun Package | Der International vs. Muyuan Foodstuff Co | Der International vs. Huasi Agricultural Development |
| Tianjin LVYIN vs. Dongguan Aohai Technology | Tianjin LVYIN vs. Vohringer Home Technology | Tianjin LVYIN vs. Hoshine Silicon Ind | Tianjin LVYIN vs. Der International Home |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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