Correlation Between Shantou Wanshun and Tianjin Hi
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By analyzing existing cross correlation between Shantou Wanshun Package and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Shantou Wanshun and Tianjin Hi 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 Shantou Wanshun with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Tianjin Hi.
Diversification Opportunities for Shantou Wanshun and Tianjin Hi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantou and Tianjin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Tianjin Hi go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Tianjin Hi
Assuming the 90 days trading horizon Shantou Wanshun is expected to generate 27.09 times less return on investment than Tianjin Hi. In addition to that, Shantou Wanshun is 1.26 times more volatile than Tianjin Hi Tech Development. It trades about 0.0 of its total potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.15 per unit of volatility. If you would invest 283.00 in Tianjin Hi Tech Development on August 31, 2024 and sell it today you would earn a total of 26.00 from holding Tianjin Hi Tech Development or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Shantou Wanshun Package |
| Tianjin Hi Tech |
Shantou Wanshun and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Tianjin Hi
The main advantage of trading using opposite Shantou Wanshun and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Tianjin Hi 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 Hi will offset losses from the drop in Tianjin Hi's long position.| Shantou Wanshun vs. Tianjin Hi Tech Development | Shantou Wanshun vs. Zhejiang Daily Media | Shantou Wanshun vs. Zhongtong Guomai Communication | Shantou Wanshun vs. Lander Sports Development |
| Tianjin Hi vs. Kweichow Moutai Co | Tianjin Hi vs. NAURA Technology Group | Tianjin Hi vs. APT Medical | Tianjin Hi vs. Contemporary Amperex Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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