Correlation Between Tianjin Ruixin and Industrial Bank
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Industrial Bank Co, you can compare the effects of market volatilities on Tianjin Ruixin and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Industrial Bank.
Diversification Opportunities for Tianjin Ruixin and Industrial Bank
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianjin and Industrial is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Industrial Bank go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Industrial Bank
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to generate 2.44 times more return on investment than Industrial Bank. However, Tianjin Ruixin is 2.44 times more volatile than Industrial Bank Co. It trades about 0.07 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.08 per unit of risk. If you would invest 1,053 in Tianjin Ruixin Technology on October 12, 2024 and sell it today you would earn a total of 427.00 from holding Tianjin Ruixin Technology or generate 40.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Industrial Bank Co
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Industrial Bank |
Tianjin Ruixin and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Industrial Bank
The main advantage of trading using opposite Tianjin Ruixin and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Tianjin Ruixin vs. Zhejiang Qianjiang Motorcycle | Tianjin Ruixin vs. Changchun Engley Automobile | Tianjin Ruixin vs. Songz Automobile Air | Tianjin Ruixin vs. King Strong New Material |
| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Eastroc Beverage Group | Industrial Bank vs. Qingdao Foods Co | Industrial Bank vs. Great Sun Foods Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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