Correlation Between Tianjin Hi and China Minsheng
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By analyzing existing cross correlation between Tianjin Hi Tech Development and China Minsheng Banking, you can compare the effects of market volatilities on Tianjin Hi and China Minsheng 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 China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and China Minsheng.
Diversification Opportunities for Tianjin Hi and China Minsheng
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking 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 China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and China Minsheng go up and down completely randomly.
Pair Corralation between Tianjin Hi and China Minsheng
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 1.19 times more return on investment than China Minsheng. However, Tianjin Hi is 1.19 times more volatile than China Minsheng Banking. It trades about 0.17 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.08 per unit of risk. If you would invest 303.00 in Tianjin Hi Tech Development on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Tianjin Hi Tech Development or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. China Minsheng Banking
Performance |
| Timeline |
| Tianjin Hi Tech |
| China Minsheng Banking |
Tianjin Hi and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and China Minsheng
The main advantage of trading using opposite Tianjin Hi and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, China Minsheng 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 China Minsheng will offset losses from the drop in China Minsheng's long position.| Tianjin Hi vs. Gansu Jiu Steel | Tianjin Hi vs. Shandong Mining Machinery | Tianjin Hi vs. Aba Chemicals Corp | Tianjin Hi vs. BlueFocus Communication Group |
| China Minsheng vs. Sinofibers Technology Co | China Minsheng vs. Shandong Mining Machinery | China Minsheng vs. Fujian Oriental Silver | China Minsheng vs. Northking Information Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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