Correlation Between Tianjin Hi and Runjian Communication
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Runjian Communication Co, you can compare the effects of market volatilities on Tianjin Hi and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Runjian Communication.
Diversification Opportunities for Tianjin Hi and Runjian Communication
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tianjin and Runjian is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Runjian Communication go up and down completely randomly.
Pair Corralation between Tianjin Hi and Runjian Communication
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 0.87 times more return on investment than Runjian Communication. However, Tianjin Hi Tech Development is 1.15 times less risky than Runjian Communication. It trades about 0.09 of its potential returns per unit of risk. Runjian Communication Co is currently generating about -0.07 per unit of risk. If you would invest 275.00 in Tianjin Hi Tech Development on October 29, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Runjian Communication Co
Performance |
| Timeline |
| Tianjin Hi Tech |
| Runjian Communication |
Tianjin Hi and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Runjian Communication
The main advantage of trading using opposite Tianjin Hi and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| Tianjin Hi vs. Cultural Investment Holdings | Tianjin Hi vs. Northern United Publishing | Tianjin Hi vs. Chengdu Xingrong Investment | Tianjin Hi vs. Offcn Education Technology |
| Runjian Communication vs. Ningbo Bohui Chemical | Runjian Communication vs. Shaanxi Construction Machinery | Runjian Communication vs. Dymatic Chemicals | Runjian Communication vs. Shanghai Construction Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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