Correlation Between Tianjin Ruixin and Xiamen Bank
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Xiamen Bank Co, you can compare the effects of market volatilities on Tianjin Ruixin and Xiamen 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Xiamen Bank.
Diversification Opportunities for Tianjin Ruixin and Xiamen Bank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Xiamen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Xiamen Bank go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Xiamen Bank
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to generate 2.53 times more return on investment than Xiamen Bank. However, Tianjin Ruixin is 2.53 times more volatile than Xiamen Bank Co. It trades about 0.04 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.08 per unit of risk. If you would invest 1,367 in Tianjin Ruixin Technology on November 6, 2024 and sell it today you would earn a total of 82.00 from holding Tianjin Ruixin Technology or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. Xiamen Bank Co
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| Xiamen Bank |
Tianjin Ruixin and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and Xiamen Bank
The main advantage of trading using opposite Tianjin Ruixin and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Xiamen 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Tianjin Ruixin vs. Duzhe Publishing Media | Tianjin Ruixin vs. Beijing Lier High | Tianjin Ruixin vs. Shanghai Action Education | Tianjin Ruixin vs. NBTM New Materials |
| Xiamen Bank vs. Guangzhou Restaurants Group | Xiamen Bank vs. Jinsanjiang Silicon Material | Xiamen Bank vs. GRG Banking Equipment | Xiamen Bank vs. Lianhe Chemical Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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