Correlation Between Tianjin Pengling and Zhejiang Century
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By analyzing existing cross correlation between Tianjin Pengling Rubber and Zhejiang Century Huatong, you can compare the effects of market volatilities on Tianjin Pengling and Zhejiang Century 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 Tianjin Pengling with a short position of Zhejiang Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and Zhejiang Century.
Diversification Opportunities for Tianjin Pengling and Zhejiang Century
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Zhejiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and Zhejiang Century Huatong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Century Huatong and Tianjin Pengling 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 Tianjin Pengling Rubber are associated (or correlated) with Zhejiang Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Century Huatong has no effect on the direction of Tianjin Pengling i.e., Tianjin Pengling and Zhejiang Century go up and down completely randomly.
Pair Corralation between Tianjin Pengling and Zhejiang Century
Assuming the 90 days trading horizon Tianjin Pengling Rubber is expected to generate 1.44 times more return on investment than Zhejiang Century. However, Tianjin Pengling is 1.44 times more volatile than Zhejiang Century Huatong. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Century Huatong is currently generating about -0.02 per unit of risk. If you would invest 385.00 in Tianjin Pengling Rubber on September 12, 2024 and sell it today you would earn a total of 140.00 from holding Tianjin Pengling Rubber or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Pengling Rubber vs. Zhejiang Century Huatong
Performance |
| Timeline |
| Tianjin Pengling Rubber |
| Zhejiang Century Huatong |
Tianjin Pengling and Zhejiang Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Pengling and Zhejiang Century
The main advantage of trading using opposite Tianjin Pengling and Zhejiang Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling position performs unexpectedly, Zhejiang Century 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 Zhejiang Century will offset losses from the drop in Zhejiang Century's long position.| Tianjin Pengling vs. Lutian Machinery Co | Tianjin Pengling vs. PetroChina Co Ltd | Tianjin Pengling vs. Bank of China | Tianjin Pengling vs. Gansu Jiu Steel |
| Zhejiang Century vs. StarPower Semiconductor | Zhejiang Century vs. Ningbo Tip Rubber | Zhejiang Century vs. Tianjin Pengling Rubber | Zhejiang Century vs. Heilongjiang Transport Development |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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