Correlation Between Tjk Machinery and Shantou Wanshun
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By analyzing existing cross correlation between Tjk Machinery Tianjin and Shantou Wanshun Package, you can compare the effects of market volatilities on Tjk Machinery and Shantou Wanshun 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 Tjk Machinery with a short position of Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tjk Machinery and Shantou Wanshun.
Diversification Opportunities for Tjk Machinery and Shantou Wanshun
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tjk and Shantou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tjk Machinery Tianjin and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package and Tjk Machinery 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 Tjk Machinery Tianjin are associated (or correlated) with Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Tjk Machinery i.e., Tjk Machinery and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Tjk Machinery and Shantou Wanshun
Assuming the 90 days trading horizon Tjk Machinery Tianjin is expected to generate 1.11 times more return on investment than Shantou Wanshun. However, Tjk Machinery is 1.11 times more volatile than Shantou Wanshun Package. It trades about 0.03 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about 0.01 per unit of risk. If you would invest 1,423 in Tjk Machinery Tianjin on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Tjk Machinery Tianjin or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tjk Machinery Tianjin vs. Shantou Wanshun Package
Performance |
| Timeline |
| Tjk Machinery Tianjin |
| Shantou Wanshun Package |
Tjk Machinery and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tjk Machinery and Shantou Wanshun
The main advantage of trading using opposite Tjk Machinery and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tjk Machinery position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.| Tjk Machinery vs. Shantou Wanshun Package | Tjk Machinery vs. Ligao Foods CoLtd | Tjk Machinery vs. Maxvision Technology Corp | Tjk Machinery vs. Iat Automobile Technology |
| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Rongsheng Petrochemical 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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