Correlation Between Tianjin Hi and Jiangxi Hengda
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Tianjin Hi and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Jiangxi Hengda.
Diversification Opportunities for Tianjin Hi and Jiangxi Hengda
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Jiangxi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Tianjin Hi and Jiangxi Hengda
Assuming the 90 days trading horizon Tianjin Hi is expected to generate 1.26 times less return on investment than Jiangxi Hengda. But when comparing it to its historical volatility, Tianjin Hi Tech Development is 1.05 times less risky than Jiangxi Hengda. It trades about 0.1 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 538.00 in Jiangxi Hengda Hi Tech on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Jiangxi Hengda Hi Tech or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Tianjin Hi Tech |
| Jiangxi Hengda Hi |
Tianjin Hi and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Jiangxi Hengda
The main advantage of trading using opposite Tianjin Hi and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Tianjin Hi vs. Cultural Investment Holdings | Tianjin Hi vs. Gome Telecom Equipment | Tianjin Hi vs. Bus Online Co | Tianjin Hi vs. Zotye Automobile Co |
| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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