Correlation Between Gansu Jiu and Tianjin Tianyao
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Tianjin Tianyao Pharmaceuticals, you can compare the effects of market volatilities on Gansu Jiu and Tianjin Tianyao 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 Gansu Jiu with a short position of Tianjin Tianyao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Tianjin Tianyao.
Diversification Opportunities for Gansu Jiu and Tianjin Tianyao
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Tianjin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Tianjin Tianyao Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Tianyao Phar and Gansu Jiu 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 Gansu Jiu Steel are associated (or correlated) with Tianjin Tianyao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Tianyao Phar has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Tianjin Tianyao go up and down completely randomly.
Pair Corralation between Gansu Jiu and Tianjin Tianyao
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Tianjin Tianyao. In addition to that, Gansu Jiu is 2.31 times more volatile than Tianjin Tianyao Pharmaceuticals. It trades about -0.24 of its total potential returns per unit of risk. Tianjin Tianyao Pharmaceuticals is currently generating about 0.21 per unit of volatility. If you would invest 429.00 in Tianjin Tianyao Pharmaceuticals on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Tianjin Tianyao Pharmaceuticals or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Tianjin Tianyao Pharmaceutical
Performance |
| Timeline |
| Gansu Jiu Steel |
| Tianjin Tianyao Phar |
Gansu Jiu and Tianjin Tianyao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Tianjin Tianyao
The main advantage of trading using opposite Gansu Jiu and Tianjin Tianyao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Tianjin Tianyao 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 Tianyao will offset losses from the drop in Tianjin Tianyao's long position.| Gansu Jiu vs. Jinhe Biotechnology Co | Gansu Jiu vs. Southern PublishingMedia Co | Gansu Jiu vs. Guangdong Marubi Biotechnology | Gansu Jiu vs. Time Publishing and |
| Tianjin Tianyao vs. Ciwen Media Co | Tianjin Tianyao vs. Dook Media Group | Tianjin Tianyao vs. Eastern Communications Co | Tianjin Tianyao vs. Chengdu B ray Media |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |