Correlation Between Tianjin Hi and GRG Banking
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By analyzing existing cross correlation between Tianjin Hi Tech Development and GRG Banking Equipment, you can compare the effects of market volatilities on Tianjin Hi and GRG Banking 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 Hi with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and GRG Banking.
Diversification Opportunities for Tianjin Hi and GRG Banking
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and GRG is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Tianjin Hi 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 Hi Tech Development are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and GRG Banking go up and down completely randomly.
Pair Corralation between Tianjin Hi and GRG Banking
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 1.58 times more return on investment than GRG Banking. However, Tianjin Hi is 1.58 times more volatile than GRG Banking Equipment. It trades about 0.09 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.02 per unit of risk. If you would invest 275.00 in Tianjin Hi Tech Development on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Tianjin Hi Tech Development or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. GRG Banking Equipment
Performance |
| Timeline |
| Tianjin Hi Tech |
| GRG Banking Equipment |
Tianjin Hi and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and GRG Banking
The main advantage of trading using opposite Tianjin Hi and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Tianjin Hi vs. Nanjing Putian Telecommunications | Tianjin Hi vs. Cloud Live Technology | Tianjin Hi vs. Shenzhen Coship Electronics | Tianjin Hi vs. Shenzhen Hifuture Electric |
| GRG Banking vs. Marssenger Kitchenware Co | GRG Banking vs. Anji Foodstuff Co | GRG Banking vs. Youyou Foods Co | GRG Banking vs. V V Food |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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