Correlation Between 159681 and Tjk Machinery
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By analyzing existing cross correlation between 159681 and Tjk Machinery Tianjin, you can compare the effects of market volatilities on 159681 and Tjk Machinery 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 159681 with a short position of Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Tjk Machinery.
Diversification Opportunities for 159681 and Tjk Machinery
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Tjk is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin and 159681 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 159681 are associated (or correlated) with Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of 159681 i.e., 159681 and Tjk Machinery go up and down completely randomly.
Pair Corralation between 159681 and Tjk Machinery
Assuming the 90 days trading horizon 159681 is expected to generate 0.7 times more return on investment than Tjk Machinery. However, 159681 is 1.42 times less risky than Tjk Machinery. It trades about 0.05 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about 0.02 per unit of risk. If you would invest 76.00 in 159681 on September 2, 2024 and sell it today you would earn a total of 22.00 from holding 159681 or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Tjk Machinery Tianjin
Performance |
| Timeline |
| 159681 |
| Tjk Machinery Tianjin |
159681 and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Tjk Machinery
The main advantage of trading using opposite 159681 and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.The idea behind 159681 and Tjk Machinery Tianjin pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Tjk Machinery vs. New China Life | Tjk Machinery vs. Ming Yang Smart | Tjk Machinery vs. 159681 | Tjk Machinery vs. 159005 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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