Correlation Between Tianjin Pengling and Yangmei Chemical
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By analyzing existing cross correlation between Tianjin Pengling Rubber and Yangmei Chemical Co, you can compare the effects of market volatilities on Tianjin Pengling and Yangmei Chemical 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 Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and Yangmei Chemical.
Diversification Opportunities for Tianjin Pengling and Yangmei Chemical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Yangmei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical 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 Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Tianjin Pengling i.e., Tianjin Pengling and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Tianjin Pengling and Yangmei Chemical
Assuming the 90 days trading horizon Tianjin Pengling is expected to generate 27.18 times less return on investment than Yangmei Chemical. But when comparing it to its historical volatility, Tianjin Pengling Rubber is 1.48 times less risky than Yangmei Chemical. It trades about 0.01 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 249.00 in Yangmei Chemical Co on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Yangmei Chemical Co or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tianjin Pengling Rubber vs. Yangmei Chemical Co
Performance |
| Timeline |
| Tianjin Pengling Rubber |
| Yangmei Chemical |
Tianjin Pengling and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Pengling and Yangmei Chemical
The main advantage of trading using opposite Tianjin Pengling and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| Tianjin Pengling vs. New China Life | Tianjin Pengling vs. Ming Yang Smart | Tianjin Pengling vs. 159681 | Tianjin Pengling vs. 159005 |
| Yangmei Chemical vs. Sinocat Environmental Technology | Yangmei Chemical vs. Sinosteel Engineering and | Yangmei Chemical vs. Shenzhen MYS Environmental | Yangmei Chemical vs. Tianjin Capital Environmental |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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