Correlation Between Guangzhou Tinci and Tianjin Realty
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Tianjin Realty Development, you can compare the effects of market volatilities on Guangzhou Tinci 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 Guangzhou Tinci with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Tianjin Realty.
Diversification Opportunities for Guangzhou Tinci and Tianjin Realty
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Tianjin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials 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 Guangzhou Tinci 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 Guangzhou Tinci Materials 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 Guangzhou Tinci i.e., Guangzhou Tinci and Tianjin Realty go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Tianjin Realty
Assuming the 90 days trading horizon Guangzhou Tinci is expected to generate 2.35 times less return on investment than Tianjin Realty. But when comparing it to its historical volatility, Guangzhou Tinci Materials is 1.12 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 231.00 in Tianjin Realty Development on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Tianjin Realty Development or generate 32.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Tianjin Realty Development
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Tianjin Realty Devel |
Guangzhou Tinci and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Tianjin Realty
The main advantage of trading using opposite Guangzhou Tinci and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Rongsheng Petrochemical Co |
| Tianjin Realty vs. Hengerda New Materials | Tianjin Realty vs. China Railway Materials | Tianjin Realty vs. Guangzhou Tinci Materials | Tianjin Realty vs. Super Dragon Engineering Plastics |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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