Correlation Between Tianjin Hi and Shantou Wanshun
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Shantou Wanshun Package, you can compare the effects of market volatilities on Tianjin Hi and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Shantou Wanshun.
Diversification Opportunities for Tianjin Hi and Shantou Wanshun
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Shantou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Tianjin Hi and Shantou Wanshun
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to under-perform the Shantou Wanshun. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Hi Tech Development is 1.14 times less risky than Shantou Wanshun. The stock trades about 0.0 of its potential returns per unit of risk. The Shantou Wanshun Package is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 623.00 in Shantou Wanshun Package on September 2, 2024 and sell it today you would lose (64.00) from holding Shantou Wanshun Package or give up 10.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Shantou Wanshun Package
Performance |
| Timeline |
| Tianjin Hi Tech |
| Shantou Wanshun Package |
Tianjin Hi and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Shantou Wanshun
The main advantage of trading using opposite Tianjin Hi and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun'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 |
| Shantou Wanshun vs. Railway Signal Communication | Shantou Wanshun vs. Union Semiconductor Co | Shantou Wanshun vs. GigaDevice SemiconductorBeiji | Shantou Wanshun vs. MayAir Technology 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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