Correlation Between Tianjin Pengling and China State
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By analyzing existing cross correlation between Tianjin Pengling Rubber and China State Construction, you can compare the effects of market volatilities on Tianjin Pengling and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and China State.
Diversification Opportunities for Tianjin Pengling and China State
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Tianjin Pengling i.e., Tianjin Pengling and China State go up and down completely randomly.
Pair Corralation between Tianjin Pengling and China State
Assuming the 90 days trading horizon Tianjin Pengling Rubber is expected to generate 1.49 times more return on investment than China State. However, Tianjin Pengling is 1.49 times more volatile than China State Construction. It trades about 0.03 of its potential returns per unit of risk. China State Construction is currently generating about -0.01 per unit of risk. If you would invest 505.00 in Tianjin Pengling Rubber on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Tianjin Pengling Rubber or generate 0.99% 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. China State Construction
Performance |
| Timeline |
| Tianjin Pengling Rubber |
| China State Construction |
Tianjin Pengling and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Pengling and China State
The main advantage of trading using opposite Tianjin Pengling and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| Tianjin Pengling vs. Anhui Jianghuai Automobile | Tianjin Pengling vs. State Grid InformationCommunication | Tianjin Pengling vs. Caihong Display Devices | Tianjin Pengling vs. Allwin Telecommunication Co |
| China State vs. Guangdong Wens Foodstuff | China State vs. Great Sun Foods Co | China State vs. Tianjin Pengling Rubber | China State vs. Suzhou Xingye Material |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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