Correlation Between Jiangsu Xinning and Tianjin Realty
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Tianjin Realty Development, you can compare the effects of market volatilities on Jiangsu Xinning 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 Jiangsu Xinning with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Tianjin Realty.
Diversification Opportunities for Jiangsu Xinning and Tianjin Realty
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Tianjin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern 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 Jiangsu Xinning 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 Jiangsu Xinning Modern 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 Jiangsu Xinning i.e., Jiangsu Xinning and Tianjin Realty go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Tianjin Realty
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to under-perform the Tianjin Realty. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Xinning Modern is 1.48 times less risky than Tianjin Realty. The stock trades about -0.08 of its potential returns per unit of risk. The Tianjin Realty Development is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 272.00 in Tianjin Realty Development on November 30, 2024 and sell it today you would lose (27.00) from holding Tianjin Realty Development or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Tianjin Realty Development
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Tianjin Realty Devel |
Jiangsu Xinning and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Tianjin Realty
The main advantage of trading using opposite Jiangsu Xinning and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning 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.| Jiangsu Xinning vs. HaiXin Foods Co | Jiangsu Xinning vs. Ligao Foods CoLtd | Jiangsu Xinning vs. Shanghai Ziyan Foods | Jiangsu Xinning vs. Qingdao Foods Co |
| Tianjin Realty vs. Nanxing Furniture Machinery | Tianjin Realty vs. Hangzhou Zhongya Machinery | Tianjin Realty vs. Qijing Machinery | Tianjin Realty vs. Long Yuan Construction |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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