Correlation Between Tianjin Hi and Fujian Oriental
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Fujian Oriental Silver, you can compare the effects of market volatilities on Tianjin Hi and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Fujian Oriental.
Diversification Opportunities for Tianjin Hi and Fujian Oriental
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Fujian is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Fujian Oriental go up and down completely randomly.
Pair Corralation between Tianjin Hi and Fujian Oriental
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 1.12 times more return on investment than Fujian Oriental. However, Tianjin Hi is 1.12 times more volatile than Fujian Oriental Silver. It trades about 0.25 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.05 per unit of risk. If you would invest 276.00 in Tianjin Hi Tech Development on September 4, 2024 and sell it today you would earn a total of 47.00 from holding Tianjin Hi Tech Development or generate 17.03% 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. Fujian Oriental Silver
Performance |
| Timeline |
| Tianjin Hi Tech |
| Fujian Oriental Silver |
Tianjin Hi and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Fujian Oriental
The main advantage of trading using opposite Tianjin Hi and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Tianjin Hi vs. PetroChina Co Ltd | Tianjin Hi vs. China Mobile Limited | Tianjin Hi vs. CNOOC Limited | Tianjin Hi vs. Ping An Insurance |
| Fujian Oriental vs. Datang HuaYin Electric | Fujian Oriental vs. Dongguan Tarry Electronics | Fujian Oriental vs. Leaguer Shenzhen MicroElectronics | Fujian Oriental vs. Digital China Information |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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