Correlation Between Tianjin Hi and Suzhou Oriental
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Tianjin Hi and Suzhou 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 Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Suzhou Oriental.
Diversification Opportunities for Tianjin Hi and Suzhou Oriental
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tianjin and Suzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi 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 Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and Suzhou Oriental go up and down completely randomly.
Pair Corralation between Tianjin Hi and Suzhou Oriental
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 0.79 times more return on investment than Suzhou Oriental. However, Tianjin Hi Tech Development is 1.26 times less risky than Suzhou Oriental. It trades about 0.11 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about 0.01 per unit of risk. If you would invest 188.00 in Tianjin Hi Tech Development on October 18, 2024 and sell it today you would earn a total of 92.00 from holding Tianjin Hi Tech Development or generate 48.94% return on investment 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. Suzhou Oriental Semiconductor
Performance |
| Timeline |
| Tianjin Hi Tech |
| Suzhou Oriental Semi |
Tianjin Hi and Suzhou Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Suzhou Oriental
The main advantage of trading using opposite Tianjin Hi and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, Suzhou 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 Suzhou Oriental will offset losses from the drop in Suzhou Oriental's long position.| Tianjin Hi vs. HaiXin Foods Co | Tianjin Hi vs. Harbin Hatou Investment | Tianjin Hi vs. Zhongrun Resources Investment | Tianjin Hi vs. Great Sun Foods Co |
| Suzhou Oriental vs. Tongyu Communication | Suzhou Oriental vs. Guangdong Jingyi Metal | Suzhou Oriental vs. Tianjin Hi Tech Development | Suzhou Oriental vs. Shanghai Shibei Hi Tech |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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