Correlation Between Masterwork Machinery and Tianjin Hi
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By analyzing existing cross correlation between Masterwork Machinery and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Masterwork Machinery 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 Masterwork Machinery with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and Tianjin Hi.
Diversification Opportunities for Masterwork Machinery and Tianjin Hi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Masterwork and Tianjin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery 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 Masterwork Machinery 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 Masterwork Machinery 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 Masterwork Machinery i.e., Masterwork Machinery and Tianjin Hi go up and down completely randomly.
Pair Corralation between Masterwork Machinery and Tianjin Hi
Assuming the 90 days trading horizon Masterwork Machinery is expected to generate 1.13 times more return on investment than Tianjin Hi. However, Masterwork Machinery is 1.13 times more volatile than Tianjin Hi Tech Development. It trades about 0.06 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.06 per unit of risk. If you would invest 409.00 in Masterwork Machinery on October 13, 2024 and sell it today you would earn a total of 110.00 from holding Masterwork Machinery or generate 26.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterwork Machinery vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Masterwork Machinery |
| Tianjin Hi Tech |
Masterwork Machinery and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and Tianjin Hi
The main advantage of trading using opposite Masterwork Machinery and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery 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.| Masterwork Machinery vs. Guangdong Jingyi Metal | Masterwork Machinery vs. Qingdao Choho Industrial | Masterwork Machinery vs. Tongling Nonferrous Metals | Masterwork Machinery vs. Suzhou Industrial Park |
| Tianjin Hi vs. Shuhua Sports Co | Tianjin Hi vs. Jiangsu Jinling Sports | Tianjin Hi vs. Changchun Engley Automobile | Tianjin Hi vs. Masterwork Machinery |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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