Correlation Between Tianjin Realty and Henan Shuanghui
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By analyzing existing cross correlation between Tianjin Realty Development and Henan Shuanghui Investment, you can compare the effects of market volatilities on Tianjin Realty and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Henan Shuanghui.
Diversification Opportunities for Tianjin Realty and Henan Shuanghui
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Henan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Tianjin Realty and Henan Shuanghui
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 2.7 times more return on investment than Henan Shuanghui. However, Tianjin Realty is 2.7 times more volatile than Henan Shuanghui Investment. It trades about 0.05 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.03 per unit of risk. If you would invest 227.00 in Tianjin Realty Development on September 14, 2024 and sell it today you would earn a total of 89.00 from holding Tianjin Realty Development or generate 39.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Tianjin Realty Development vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Tianjin Realty Devel |
| Henan Shuanghui Inve |
Tianjin Realty and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Henan Shuanghui
The main advantage of trading using opposite Tianjin Realty and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Tianjin Realty vs. Zhejiang Xiantong RubberPlastic | Tianjin Realty vs. Spring Airlines Co | Tianjin Realty vs. Jiangsu Yanghe Brewery | Tianjin Realty vs. Juneyao Airlines |
| Henan Shuanghui vs. Nanjing Putian Telecommunications | Henan Shuanghui vs. Tianjin Realty Development | Henan Shuanghui vs. Kangyue Technology Co | Henan Shuanghui vs. Shenzhen Hifuture Electric |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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