Correlation Between Tianjin Hi and Chongqing Brewery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Hi Tech Development and Chongqing Brewery Co, you can compare the effects of market volatilities on Tianjin Hi and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Chongqing Brewery.
Diversification Opportunities for Tianjin Hi and Chongqing Brewery
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Chongqing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Tianjin Hi and Chongqing Brewery
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 1.27 times more return on investment than Chongqing Brewery. However, Tianjin Hi is 1.27 times more volatile than Chongqing Brewery Co. It trades about 0.35 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.31 per unit of risk. If you would invest 255.00 in Tianjin Hi Tech Development on November 6, 2024 and sell it today you would earn a total of 31.00 from holding Tianjin Hi Tech Development or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Chongqing Brewery Co
Performance |
| Timeline |
| Tianjin Hi Tech |
| Chongqing Brewery |
Tianjin Hi and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Chongqing Brewery
The main advantage of trading using opposite Tianjin Hi and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Tianjin Hi vs. Central Plains Environment | Tianjin Hi vs. Hubei Tech Semiconductors | Tianjin Hi vs. StarPower Semiconductor | Tianjin Hi vs. Elite Color Environmental |
| Chongqing Brewery vs. Heren Health Co | Chongqing Brewery vs. Konfoong Materials International | Chongqing Brewery vs. Advanced Technology Materials | Chongqing Brewery vs. Shenzhen Cotran New |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |