Correlation Between Tianjin Realty and Zhongrun Resources
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By analyzing existing cross correlation between Tianjin Realty Development and Zhongrun Resources Investment, you can compare the effects of market volatilities on Tianjin Realty and Zhongrun Resources 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 Realty with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Zhongrun Resources.
Diversification Opportunities for Tianjin Realty and Zhongrun Resources
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Zhongrun is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Tianjin Realty 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 Realty Development are associated (or correlated) with Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Tianjin Realty and Zhongrun Resources
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.05 times more return on investment than Zhongrun Resources. However, Tianjin Realty is 1.05 times more volatile than Zhongrun Resources Investment. It trades about 0.1 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about -0.21 per unit of risk. If you would invest 255.00 in Tianjin Realty Development on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Tianjin Realty Development or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Tianjin Realty Devel |
| Zhongrun Resources |
Tianjin Realty and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Zhongrun Resources
The main advantage of trading using opposite Tianjin Realty and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Tianjin Realty vs. Hengerda New Materials | Tianjin Realty vs. China Railway Materials | Tianjin Realty vs. Guangzhou Tinci Materials | Tianjin Realty vs. Super Dragon Engineering Plastics |
| Zhongrun Resources vs. Industrial and Commercial | Zhongrun Resources vs. China Construction Bank | Zhongrun Resources vs. Bank of China | Zhongrun Resources vs. Agricultural Bank of |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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