Correlation Between Changshu Ruite and Tangshan Port
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By analyzing existing cross correlation between Changshu Ruite Electric and Tangshan Port Group, you can compare the effects of market volatilities on Changshu Ruite and Tangshan Port 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 Changshu Ruite with a short position of Tangshan Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Ruite and Tangshan Port.
Diversification Opportunities for Changshu Ruite and Tangshan Port
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Changshu and Tangshan is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Ruite Electric and Tangshan Port Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangshan Port Group and Changshu Ruite 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 Changshu Ruite Electric are associated (or correlated) with Tangshan Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangshan Port Group has no effect on the direction of Changshu Ruite i.e., Changshu Ruite and Tangshan Port go up and down completely randomly.
Pair Corralation between Changshu Ruite and Tangshan Port
Assuming the 90 days trading horizon Changshu Ruite is expected to generate 2.49 times less return on investment than Tangshan Port. In addition to that, Changshu Ruite is 1.79 times more volatile than Tangshan Port Group. It trades about 0.02 of its total potential returns per unit of risk. Tangshan Port Group is currently generating about 0.07 per unit of volatility. If you would invest 262.00 in Tangshan Port Group on September 5, 2024 and sell it today you would earn a total of 189.00 from holding Tangshan Port Group or generate 72.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Changshu Ruite Electric vs. Tangshan Port Group
Performance |
| Timeline |
| Changshu Ruite Electric |
| Tangshan Port Group |
Changshu Ruite and Tangshan Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Ruite and Tangshan Port
The main advantage of trading using opposite Changshu Ruite and Tangshan Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Ruite position performs unexpectedly, Tangshan Port 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 Tangshan Port will offset losses from the drop in Tangshan Port's long position.| Changshu Ruite vs. Muyuan Foodstuff Co | Changshu Ruite vs. Qingdao Foods Co | Changshu Ruite vs. Nuode Investment Co | Changshu Ruite vs. Hunan Investment Group |
| Tangshan Port vs. Industrial and Commercial | Tangshan Port vs. Kweichow Moutai Co | Tangshan Port vs. Agricultural Bank of | Tangshan Port vs. China Mobile Limited |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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