Correlation Between Tianjin Pengling and China Marine
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By analyzing existing cross correlation between Tianjin Pengling Rubber and China Marine Information, you can compare the effects of market volatilities on Tianjin Pengling and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and China Marine.
Diversification Opportunities for Tianjin Pengling and China Marine
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Tianjin Pengling i.e., Tianjin Pengling and China Marine go up and down completely randomly.
Pair Corralation between Tianjin Pengling and China Marine
Assuming the 90 days trading horizon Tianjin Pengling is expected to generate 2.1 times less return on investment than China Marine. In addition to that, Tianjin Pengling is 1.16 times more volatile than China Marine Information. It trades about 0.01 of its total potential returns per unit of risk. China Marine Information is currently generating about 0.04 per unit of volatility. If you would invest 2,365 in China Marine Information on September 4, 2024 and sell it today you would earn a total of 384.00 from holding China Marine Information or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Pengling Rubber vs. China Marine Information
Performance |
| Timeline |
| Tianjin Pengling Rubber |
| China Marine Information |
Tianjin Pengling and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Pengling and China Marine
The main advantage of trading using opposite Tianjin Pengling and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| Tianjin Pengling vs. China Life Insurance | Tianjin Pengling vs. Fujian Longzhou Transportation | Tianjin Pengling vs. New Hope Dairy | Tianjin Pengling vs. Harbin Air Conditioning |
| China Marine vs. Jiangnan Mould Plastic | China Marine vs. Sinofibers Technology Co | China Marine vs. Tianjin Pengling Rubber | China Marine vs. Guangzhou KingTeller 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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