Correlation Between Tianjin Ruixin and Fujian Nanwang
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Fujian Nanwang Environment, you can compare the effects of market volatilities on Tianjin Ruixin and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Fujian Nanwang.
Diversification Opportunities for Tianjin Ruixin and Fujian Nanwang
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Fujian is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Fujian Nanwang
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to under-perform the Fujian Nanwang. In addition to that, Tianjin Ruixin is 1.26 times more volatile than Fujian Nanwang Environment. It trades about -0.16 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.07 per unit of volatility. If you would invest 1,285 in Fujian Nanwang Environment on October 18, 2024 and sell it today you would lose (75.00) from holding Fujian Nanwang Environment or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Fujian Nanwang Envir |
Tianjin Ruixin and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Fujian Nanwang
The main advantage of trading using opposite Tianjin Ruixin and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang'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 |
| Fujian Nanwang vs. Kuangda Technology Group | Fujian Nanwang vs. Tianjin Ruixin Technology | Fujian Nanwang vs. Guangdong Xiongsu Technology | Fujian Nanwang vs. Keeson Technology Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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