Correlation Between Tianjin Ruixin and ZTE Corp
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By analyzing existing cross correlation between Tianjin Ruixin Technology and ZTE Corp, you can compare the effects of market volatilities on Tianjin Ruixin and ZTE Corp 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 Tianjin Ruixin with a short position of ZTE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and ZTE Corp.
Diversification Opportunities for Tianjin Ruixin and ZTE Corp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and ZTE is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and ZTE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTE Corp and Tianjin Ruixin 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 Tianjin Ruixin Technology are associated (or correlated) with ZTE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTE Corp has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and ZTE Corp go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and ZTE Corp
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to under-perform the ZTE Corp. In addition to that, Tianjin Ruixin is 1.06 times more volatile than ZTE Corp. It trades about -0.26 of its total potential returns per unit of risk. ZTE Corp is currently generating about 0.16 per unit of volatility. If you would invest 3,106 in ZTE Corp on October 9, 2024 and sell it today you would earn a total of 374.00 from holding ZTE Corp or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. ZTE Corp
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| ZTE Corp |
Tianjin Ruixin and ZTE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and ZTE Corp
The main advantage of trading using opposite Tianjin Ruixin and ZTE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, ZTE Corp 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 ZTE Corp will offset losses from the drop in ZTE Corp's long position.| Tianjin Ruixin vs. Zhongrun Resources Investment | Tianjin Ruixin vs. Ningbo MedicalSystem Biotechnology | Tianjin Ruixin vs. Xiandai Investment Co | Tianjin Ruixin vs. Beijing Jiaman Dress |
| ZTE Corp vs. Jiangsu Jinling Sports | ZTE Corp vs. Shanghai Yaoji Playing | ZTE Corp vs. Shanghai CEO Environmental | ZTE Corp vs. Dongfeng Automobile 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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