Correlation Between Tianjin Ruixin and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Tianjin Ruixin Technology and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Tianjin Ruixin and SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and SUNSEA Telecommunicatio.
Diversification Opportunities for Tianjin Ruixin and SUNSEA Telecommunicatio
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and SUNSEA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to under-perform the SUNSEA Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Ruixin Technology is 1.42 times less risky than SUNSEA Telecommunicatio. The stock trades about -0.24 of its potential returns per unit of risk. The SUNSEA Telecommunications Co is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,201 in SUNSEA Telecommunications Co on October 17, 2024 and sell it today you would lose (227.00) from holding SUNSEA Telecommunications Co or give up 18.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| SUNSEA Telecommunicatio |
Tianjin Ruixin and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and SUNSEA Telecommunicatio
The main advantage of trading using opposite Tianjin Ruixin and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Tianjin Ruixin vs. Shenzhen Glory Medical | Tianjin Ruixin vs. Qingdao Haier Biomedical | Tianjin Ruixin vs. Allwin Telecommunication Co | Tianjin Ruixin vs. Tongyu Communication |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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