Correlation Between Inner Mongolia and Tianjin Silvery
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Inner Mongolia and Tianjin Silvery 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 Inner Mongolia with a short position of Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Tianjin Silvery.
Diversification Opportunities for Inner Mongolia and Tianjin Silvery
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Tianjin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Inner Mongolia and Tianjin Silvery
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 1.42 times more return on investment than Tianjin Silvery. However, Inner Mongolia is 1.42 times more volatile than Tianjin Silvery Dragon. It trades about 0.14 of its potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about -0.02 per unit of risk. If you would invest 175.00 in Inner Mongolia BaoTou on August 27, 2024 and sell it today you would earn a total of 19.00 from holding Inner Mongolia BaoTou or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Tianjin Silvery Dragon
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Tianjin Silvery Dragon |
Inner Mongolia and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Tianjin Silvery
The main advantage of trading using opposite Inner Mongolia and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Tianjin Silvery 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 Silvery will offset losses from the drop in Tianjin Silvery's long position.| Inner Mongolia vs. Wanhua Chemical Group | Inner Mongolia vs. Shandong Gold Mining | Inner Mongolia vs. Rongsheng Petrochemical Co | Inner Mongolia vs. Jiangxi Ganfeng Lithium |
| Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Shandong Gold Mining | Tianjin Silvery vs. Rongsheng Petrochemical Co | Tianjin Silvery vs. Inner Mongolia BaoTou |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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