Correlation Between Yili Chuanning and Tianjin Realty
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Tianjin Realty Development, you can compare the effects of market volatilities on Yili Chuanning and Tianjin Realty 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 Yili Chuanning with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Tianjin Realty.
Diversification Opportunities for Yili Chuanning and Tianjin Realty
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yili and Tianjin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel and Yili Chuanning 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 Yili Chuanning Biotechnology are associated (or correlated) with Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Tianjin Realty go up and down completely randomly.
Pair Corralation between Yili Chuanning and Tianjin Realty
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to generate 0.39 times more return on investment than Tianjin Realty. However, Yili Chuanning Biotechnology is 2.54 times less risky than Tianjin Realty. It trades about -0.05 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about -0.23 per unit of risk. If you would invest 1,235 in Yili Chuanning Biotechnology on October 28, 2024 and sell it today you would lose (27.00) from holding Yili Chuanning Biotechnology or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Tianjin Realty Development
Performance |
| Timeline |
| Yili Chuanning Biote |
| Tianjin Realty Devel |
Yili Chuanning and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Tianjin Realty
The main advantage of trading using opposite Yili Chuanning and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Tianjin Realty 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 Realty will offset losses from the drop in Tianjin Realty's long position.| Yili Chuanning vs. Chinese Universe Publishing | Yili Chuanning vs. Shandong Publishing Media | Yili Chuanning vs. Jiangsu Phoenix Publishing | Yili Chuanning vs. Time Publishing and |
| Tianjin Realty vs. Allgens Medical Technology | Tianjin Realty vs. Double Medical Technology | Tianjin Realty vs. Yili Chuanning Biotechnology | Tianjin Realty vs. APT Medical |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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