Correlation Between Tianjin Ruixin and Beijing Tiantan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Ruixin Technology and Beijing Tiantan Biological, you can compare the effects of market volatilities on Tianjin Ruixin and Beijing Tiantan 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 Beijing Tiantan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Beijing Tiantan.
Diversification Opportunities for Tianjin Ruixin and Beijing Tiantan
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianjin and Beijing is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Beijing Tiantan Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tiantan Biol 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 Beijing Tiantan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tiantan Biol has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Beijing Tiantan go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Beijing Tiantan
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to under-perform the Beijing Tiantan. In addition to that, Tianjin Ruixin is 1.85 times more volatile than Beijing Tiantan Biological. It trades about -0.09 of its total potential returns per unit of risk. Beijing Tiantan Biological is currently generating about 0.0 per unit of volatility. If you would invest 2,098 in Beijing Tiantan Biological on October 25, 2024 and sell it today you would lose (5.00) from holding Beijing Tiantan Biological or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Beijing Tiantan Biological
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Beijing Tiantan Biol |
Tianjin Ruixin and Beijing Tiantan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Beijing Tiantan
The main advantage of trading using opposite Tianjin Ruixin and Beijing Tiantan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Beijing Tiantan 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 Beijing Tiantan will offset losses from the drop in Beijing Tiantan's long position.| Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Rongsheng Petrochemical Co |
| Beijing Tiantan vs. Hengdian Entertainment Co | Beijing Tiantan vs. Guangdong Jingyi Metal | Beijing Tiantan vs. ZYF Lopsking Aluminum | Beijing Tiantan vs. Rising Nonferrous Metals |
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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |