Correlation Between Tjk Machinery and Allied Machinery
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By analyzing existing cross correlation between Tjk Machinery Tianjin and Allied Machinery Co, you can compare the effects of market volatilities on Tjk Machinery and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tjk Machinery and Allied Machinery.
Diversification Opportunities for Tjk Machinery and Allied Machinery
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tjk and Allied is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tjk Machinery Tianjin and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Tjk Machinery i.e., Tjk Machinery and Allied Machinery go up and down completely randomly.
Pair Corralation between Tjk Machinery and Allied Machinery
Assuming the 90 days trading horizon Tjk Machinery Tianjin is expected to generate 1.54 times more return on investment than Allied Machinery. However, Tjk Machinery is 1.54 times more volatile than Allied Machinery Co. It trades about 0.13 of its potential returns per unit of risk. Allied Machinery Co is currently generating about 0.17 per unit of risk. If you would invest 1,155 in Tjk Machinery Tianjin on August 28, 2024 and sell it today you would earn a total of 239.00 from holding Tjk Machinery Tianjin or generate 20.69% 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. Allied Machinery Co
Performance |
| Timeline |
| Tjk Machinery Tianjin |
| Allied Machinery |
Tjk Machinery and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tjk Machinery and Allied Machinery
The main advantage of trading using opposite Tjk Machinery and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tjk Machinery position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Tjk Machinery vs. Biwin Storage Technology | Tjk Machinery vs. PetroChina Co Ltd | Tjk Machinery vs. Industrial and Commercial | Tjk Machinery vs. China Construction Bank |
| Allied Machinery vs. Biwin Storage Technology | Allied Machinery vs. PetroChina Co Ltd | Allied Machinery vs. Industrial and Commercial | Allied Machinery vs. China Construction Bank |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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