Correlation Between Tjk Machinery and Cultural Investment
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By analyzing existing cross correlation between Tjk Machinery Tianjin and Cultural Investment Holdings, you can compare the effects of market volatilities on Tjk Machinery and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tjk Machinery and Cultural Investment.
Diversification Opportunities for Tjk Machinery and Cultural Investment
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tjk and Cultural is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tjk Machinery Tianjin and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Tjk Machinery i.e., Tjk Machinery and Cultural Investment go up and down completely randomly.
Pair Corralation between Tjk Machinery and Cultural Investment
Assuming the 90 days trading horizon Tjk Machinery Tianjin is expected to generate 0.9 times more return on investment than Cultural Investment. However, Tjk Machinery Tianjin is 1.11 times less risky than Cultural Investment. It trades about 0.02 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,451 in Tjk Machinery Tianjin on September 2, 2024 and sell it today you would lose (33.00) from holding Tjk Machinery Tianjin or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tjk Machinery Tianjin vs. Cultural Investment Holdings
Performance |
| Timeline |
| Tjk Machinery Tianjin |
| Cultural Investment |
Tjk Machinery and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tjk Machinery and Cultural Investment
The main advantage of trading using opposite Tjk Machinery and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tjk Machinery position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Tjk Machinery vs. New China Life | Tjk Machinery vs. Ming Yang Smart | Tjk Machinery vs. 159681 | Tjk Machinery vs. 159005 |
| Cultural Investment vs. China Minmetals Rare | Cultural Investment vs. Chengtun Mining Group | Cultural Investment vs. Qinghaihuading Industrial Co | Cultural Investment vs. China Life Insurance |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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