Correlation Between Tianjin Hi and Shenzhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Hi Tech Development and Shenzhen AV Display Co, you can compare the effects of market volatilities on Tianjin Hi and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Shenzhen.
Diversification Opportunities for Tianjin Hi and Shenzhen
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Shenzhen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Shenzhen go up and down completely randomly.
Pair Corralation between Tianjin Hi and Shenzhen
Assuming the 90 days trading horizon Tianjin Hi is expected to generate 1.57 times less return on investment than Shenzhen. But when comparing it to its historical volatility, Tianjin Hi Tech Development is 1.24 times less risky than Shenzhen. It trades about 0.1 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,131 in Shenzhen AV Display Co on September 1, 2024 and sell it today you would earn a total of 296.00 from holding Shenzhen AV Display Co or generate 9.45% 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. Shenzhen AV Display Co
Performance |
| Timeline |
| Tianjin Hi Tech |
| Shenzhen AV Display |
Tianjin Hi and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Shenzhen
The main advantage of trading using opposite Tianjin Hi and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen'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 |
| Shenzhen vs. Western Superconducting Tech | Shenzhen vs. Tianshui Huatian Technology | Shenzhen vs. Nanjing Putian Telecommunications | Shenzhen vs. Guangdong Shenglu Telecommunication |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |