Correlation Between Tianjin Hi and Bank of Communications
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Bank of Communications, you can compare the effects of market volatilities on Tianjin Hi and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Bank of Communications.
Diversification Opportunities for Tianjin Hi and Bank of Communications
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianjin and Bank is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Bank of Communications go up and down completely randomly.
Pair Corralation between Tianjin Hi and Bank of Communications
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 1.7 times more return on investment than Bank of Communications. However, Tianjin Hi is 1.7 times more volatile than Bank of Communications. It trades about 0.09 of its potential returns per unit of risk. Bank of Communications is currently generating about -0.24 per unit of risk. If you would invest 275.00 in Tianjin Hi Tech Development on October 29, 2024 and sell it today you would earn a total of 11.00 from holding Tianjin Hi Tech Development or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Bank of Communications
Performance |
| Timeline |
| Tianjin Hi Tech |
| Bank of Communications |
Tianjin Hi and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Bank of Communications
The main advantage of trading using opposite Tianjin Hi and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Tianjin Hi vs. Cultural Investment Holdings | Tianjin Hi vs. Northern United Publishing | Tianjin Hi vs. Chengdu Xingrong Investment | Tianjin Hi vs. Offcn Education 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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