Correlation Between Tianjin Ruixin and Kunwu Jiuding
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Tianjin Ruixin and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Kunwu Jiuding.
Diversification Opportunities for Tianjin Ruixin and Kunwu Jiuding
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Kunwu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Kunwu Jiuding
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to generate 0.74 times more return on investment than Kunwu Jiuding. However, Tianjin Ruixin Technology is 1.34 times less risky than Kunwu Jiuding. It trades about 0.08 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.05 per unit of risk. If you would invest 1,367 in Tianjin Ruixin Technology on August 31, 2024 and sell it today you would earn a total of 53.00 from holding Tianjin Ruixin Technology or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Kunwu Jiuding Investment |
Tianjin Ruixin and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Kunwu Jiuding
The main advantage of trading using opposite Tianjin Ruixin and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Tianjin Ruixin vs. China Satellite Communications | Tianjin Ruixin vs. SUNSEA Telecommunications Co | Tianjin Ruixin vs. Allwin Telecommunication Co | Tianjin Ruixin vs. Zhongtong Guomai Communication |
| Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Contemporary Amperex Technology | Kunwu Jiuding vs. G bits Network Technology | Kunwu Jiuding vs. BYD Co Ltd |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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