Correlation Between V V and Tianjin Hi
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By analyzing existing cross correlation between V V Food and Tianjin Hi Tech Development, you can compare the effects of market volatilities on V V and Tianjin Hi 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 V V with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Tianjin Hi.
Diversification Opportunities for V V and Tianjin Hi
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600300 and Tianjin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech and V V 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 V V Food are associated (or correlated) with Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of V V i.e., V V and Tianjin Hi go up and down completely randomly.
Pair Corralation between V V and Tianjin Hi
Assuming the 90 days trading horizon V V Food is expected to generate 1.0 times more return on investment than Tianjin Hi. However, V V Food is 1.0 times less risky than Tianjin Hi. It trades about 0.06 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.02 per unit of risk. If you would invest 311.00 in V V Food on October 30, 2024 and sell it today you would earn a total of 18.00 from holding V V Food or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| V V Food |
| Tianjin Hi Tech |
V V and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Tianjin Hi
The main advantage of trading using opposite V V and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| V V vs. Holitech Technology Co | V V vs. Ningbo Ligong Online | V V vs. Eyebright Medical Technology | V V vs. Thinkon Semiconductor Jinzhou |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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