Correlation Between Tianjin Hi and Gemdale Corp
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Gemdale Corp, you can compare the effects of market volatilities on Tianjin Hi and Gemdale Corp 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 Gemdale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Gemdale Corp.
Diversification Opportunities for Tianjin Hi and Gemdale Corp
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tianjin and Gemdale is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Gemdale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemdale Corp 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 Gemdale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemdale Corp has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Gemdale Corp go up and down completely randomly.
Pair Corralation between Tianjin Hi and Gemdale Corp
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 2.07 times more return on investment than Gemdale Corp. However, Tianjin Hi is 2.07 times more volatile than Gemdale Corp. It trades about -0.18 of its potential returns per unit of risk. Gemdale Corp is currently generating about -0.41 per unit of risk. If you would invest 321.00 in Tianjin Hi Tech Development on October 11, 2024 and sell it today you would lose (56.00) from holding Tianjin Hi Tech Development or give up 17.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Gemdale Corp
Performance |
| Timeline |
| Tianjin Hi Tech |
| Gemdale Corp |
Tianjin Hi and Gemdale Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Gemdale Corp
The main advantage of trading using opposite Tianjin Hi and Gemdale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Gemdale Corp 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 Gemdale Corp will offset losses from the drop in Gemdale Corp's long position.| Tianjin Hi vs. Elite Color Environmental | Tianjin Hi vs. Xinjiang Beixin RoadBridge | Tianjin Hi vs. Shenzhen MYS Environmental | Tianjin Hi vs. Tianjin Capital Environmental |
| Gemdale Corp vs. RoadMain T Co | Gemdale Corp vs. Shanghai Shibei Hi Tech | Gemdale Corp vs. Tianjin Hi Tech Development | Gemdale Corp vs. Tongyu Communication |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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