Correlation Between Tianjin Ruixin and Changsha Jingjia
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Changsha Jingjia Microelectronics, you can compare the effects of market volatilities on Tianjin Ruixin and Changsha Jingjia 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 Changsha Jingjia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Changsha Jingjia.
Diversification Opportunities for Tianjin Ruixin and Changsha Jingjia
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Changsha is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Changsha Jingjia Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha Jingjia Mic 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 Changsha Jingjia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha Jingjia Mic has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Changsha Jingjia go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Changsha Jingjia
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to under-perform the Changsha Jingjia. In addition to that, Tianjin Ruixin is 1.17 times more volatile than Changsha Jingjia Microelectronics. It trades about -0.24 of its total potential returns per unit of risk. Changsha Jingjia Microelectronics is currently generating about 0.02 per unit of volatility. If you would invest 9,229 in Changsha Jingjia Microelectronics on October 17, 2024 and sell it today you would earn a total of 52.00 from holding Changsha Jingjia Microelectronics or generate 0.56% 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. Changsha Jingjia Microelectron
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Changsha Jingjia Mic |
Tianjin Ruixin and Changsha Jingjia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Changsha Jingjia
The main advantage of trading using opposite Tianjin Ruixin and Changsha Jingjia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Changsha Jingjia 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 Changsha Jingjia will offset losses from the drop in Changsha Jingjia'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 |
| Changsha Jingjia vs. 360 Security Technology | Changsha Jingjia vs. Hubei Forbon Technology | Changsha Jingjia vs. Tianjin Ruixin Technology | Changsha Jingjia vs. Luyin Investment Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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