Correlation Between Nanning Chemical and Tianjin Hi
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By analyzing existing cross correlation between Nanning Chemical Industry and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Nanning Chemical 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 Nanning Chemical with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanning Chemical and Tianjin Hi.
Diversification Opportunities for Nanning Chemical and Tianjin Hi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanning and Tianjin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nanning Chemical Industry 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 Nanning Chemical 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 Nanning Chemical Industry 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 Nanning Chemical i.e., Nanning Chemical and Tianjin Hi go up and down completely randomly.
Pair Corralation between Nanning Chemical and Tianjin Hi
Assuming the 90 days trading horizon Nanning Chemical Industry is expected to generate 0.71 times more return on investment than Tianjin Hi. However, Nanning Chemical Industry is 1.41 times less risky than Tianjin Hi. It trades about 0.0 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.01 per unit of risk. If you would invest 1,787 in Nanning Chemical Industry on October 26, 2024 and sell it today you would lose (30.00) from holding Nanning Chemical Industry or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanning Chemical Industry vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Nanning Chemical Industry |
| Tianjin Hi Tech |
Nanning Chemical and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanning Chemical and Tianjin Hi
The main advantage of trading using opposite Nanning Chemical and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanning Chemical 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.| Nanning Chemical vs. State Grid InformationCommunication | Nanning Chemical vs. Ningbo Tech Bank Co | Nanning Chemical vs. Hua Xia Bank | Nanning Chemical vs. Ping An Insurance |
| Tianjin Hi vs. Beijing Mainstreets Investment | Tianjin Hi vs. Shandong Polymer Biochemicals | Tianjin Hi vs. Zhongrun Resources Investment | Tianjin Hi vs. Shenzhen Noposion Agrochemicals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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