Correlation Between Tianjin Hi and Chahua Modern
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Hi Tech Development and Chahua Modern Housewares, you can compare the effects of market volatilities on Tianjin Hi and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Chahua Modern.
Diversification Opportunities for Tianjin Hi and Chahua Modern
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Chahua is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Chahua Modern go up and down completely randomly.
Pair Corralation between Tianjin Hi and Chahua Modern
Assuming the 90 days trading horizon Tianjin Hi is expected to generate 1.05 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, Tianjin Hi Tech Development is 1.45 times less risky than Chahua Modern. It trades about 0.25 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,889 in Chahua Modern Housewares on September 4, 2024 and sell it today you would earn a total of 317.00 from holding Chahua Modern Housewares or generate 16.78% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Tianjin Hi Tech |
| Chahua Modern Housewares |
Tianjin Hi and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Chahua Modern
The main advantage of trading using opposite Tianjin Hi and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern'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 |
| Chahua Modern vs. Zhejiang Yayi Metal | Chahua Modern vs. Bomin Electronics Co | Chahua Modern vs. Nantong Haixing Electronics | Chahua Modern vs. Leyard Optoelectronic |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |