Correlation Between SSAW Hotels and TianJin 712
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By analyzing existing cross correlation between SSAW Hotels Resorts and TianJin 712 Communication, you can compare the effects of market volatilities on SSAW Hotels and TianJin 712 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 SSAW Hotels with a short position of TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and TianJin 712.
Diversification Opportunities for SSAW Hotels and TianJin 712
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SSAW and TianJin is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication and SSAW Hotels 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 SSAW Hotels Resorts are associated (or correlated) with TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of SSAW Hotels i.e., SSAW Hotels and TianJin 712 go up and down completely randomly.
Pair Corralation between SSAW Hotels and TianJin 712
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to generate 1.36 times more return on investment than TianJin 712. However, SSAW Hotels is 1.36 times more volatile than TianJin 712 Communication. It trades about 0.09 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about 0.05 per unit of risk. If you would invest 1,494 in SSAW Hotels Resorts on October 18, 2024 and sell it today you would earn a total of 514.00 from holding SSAW Hotels Resorts or generate 34.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. TianJin 712 Communication
Performance |
| Timeline |
| SSAW Hotels Resorts |
| TianJin 712 Communication |
SSAW Hotels and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and TianJin 712
The main advantage of trading using opposite SSAW Hotels and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712's long position.| SSAW Hotels vs. Tianshan Aluminum Group | SSAW Hotels vs. Chengtun Mining Group | SSAW Hotels vs. Anhui Tongguan Copper | SSAW Hotels vs. Hainan Mining Co |
| TianJin 712 vs. Sichuan Fulin Transportation | TianJin 712 vs. Tieling Newcity Investment | TianJin 712 vs. Vanfund Urban Investment | TianJin 712 vs. SSAW Hotels Resorts |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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