Correlation Between Tianjin Realty and Zoje Resources
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By analyzing existing cross correlation between Tianjin Realty Development and Zoje Resources Investment, you can compare the effects of market volatilities on Tianjin Realty and Zoje 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Zoje Resources.
Diversification Opportunities for Tianjin Realty and Zoje Resources
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Zoje is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Zoje Resources go up and down completely randomly.
Pair Corralation between Tianjin Realty and Zoje Resources
Assuming the 90 days trading horizon Tianjin Realty Development is expected to under-perform the Zoje Resources. In addition to that, Tianjin Realty is 1.52 times more volatile than Zoje Resources Investment. It trades about -0.24 of its total potential returns per unit of risk. Zoje Resources Investment is currently generating about -0.01 per unit of volatility. If you would invest 251.00 in Zoje Resources Investment on October 29, 2024 and sell it today you would lose (3.00) from holding Zoje Resources Investment or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Zoje Resources Investment
Performance |
| Timeline |
| Tianjin Realty Devel |
| Zoje Resources Investment |
Tianjin Realty and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Zoje Resources
The main advantage of trading using opposite Tianjin Realty and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Zoje 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Tianjin Realty vs. China Asset Management | Tianjin Realty vs. Zhejiang Construction Investment | Tianjin Realty vs. Postal Savings Bank | Tianjin Realty vs. Xiandai Investment Co |
| Zoje Resources vs. Linzhou Heavy Machinery | Zoje Resources vs. Guangdong Qunxing Toys | Zoje Resources vs. Shaanxi Construction Machinery | Zoje Resources vs. Allied Machinery Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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