Correlation Between Beijing Jiaman and Tianjin Ruixin
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By analyzing existing cross correlation between Beijing Jiaman Dress and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Beijing Jiaman and Tianjin Ruixin 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 Beijing Jiaman with a short position of Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Tianjin Ruixin.
Diversification Opportunities for Beijing Jiaman and Tianjin Ruixin
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Tianjin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology and Beijing Jiaman 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 Beijing Jiaman Dress are associated (or correlated) with Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Tianjin Ruixin
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to generate 0.61 times more return on investment than Tianjin Ruixin. However, Beijing Jiaman Dress is 1.63 times less risky than Tianjin Ruixin. It trades about -0.1 of its potential returns per unit of risk. Tianjin Ruixin Technology is currently generating about -0.09 per unit of risk. If you would invest 2,087 in Beijing Jiaman Dress on October 25, 2024 and sell it today you would lose (99.00) from holding Beijing Jiaman Dress or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Tianjin Ruixin Technology
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Tianjin Ruixin Technology |
Beijing Jiaman and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Tianjin Ruixin
The main advantage of trading using opposite Beijing Jiaman and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Tianjin Ruixin 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 Ruixin will offset losses from the drop in Tianjin Ruixin's long position.| Beijing Jiaman vs. PetroChina Co Ltd | Beijing Jiaman vs. Gansu Jiu Steel | Beijing Jiaman vs. Ming Yang Smart | Beijing Jiaman vs. Aba Chemicals Corp |
| Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Rongsheng Petrochemical 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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