Correlation Between Lootom Telcovideo and Tianjin Hi
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By analyzing existing cross correlation between Lootom Telcovideo Network and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Lootom Telcovideo 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 Lootom Telcovideo with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lootom Telcovideo and Tianjin Hi.
Diversification Opportunities for Lootom Telcovideo and Tianjin Hi
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lootom and Tianjin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lootom Telcovideo Network 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 Lootom Telcovideo 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 Lootom Telcovideo Network 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 Lootom Telcovideo i.e., Lootom Telcovideo and Tianjin Hi go up and down completely randomly.
Pair Corralation between Lootom Telcovideo and Tianjin Hi
Assuming the 90 days trading horizon Lootom Telcovideo Network is expected to generate 0.95 times more return on investment than Tianjin Hi. However, Lootom Telcovideo Network is 1.06 times less risky than Tianjin Hi. It trades about 0.04 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.01 per unit of risk. If you would invest 637.00 in Lootom Telcovideo Network on October 16, 2024 and sell it today you would earn a total of 203.00 from holding Lootom Telcovideo Network or generate 31.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Lootom Telcovideo Network vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Lootom Telcovideo Network |
| Tianjin Hi Tech |
Lootom Telcovideo and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lootom Telcovideo and Tianjin Hi
The main advantage of trading using opposite Lootom Telcovideo and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lootom Telcovideo 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.| Lootom Telcovideo vs. Beijing Baolande Software | Lootom Telcovideo vs. Zhongrun Resources Investment | Lootom Telcovideo vs. Jiangsu Yueda Investment | Lootom Telcovideo vs. GuoChuang Software Co |
| Tianjin Hi vs. Eastroc Beverage Group | Tianjin Hi vs. V V Food | Tianjin Hi vs. XiaMen HongXin Electron tech | Tianjin Hi vs. Linewell Software Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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