Correlation Between Tianjin Realty and Allwin Telecommunicatio
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By analyzing existing cross correlation between Tianjin Realty Development and Allwin Telecommunication Co, you can compare the effects of market volatilities on Tianjin Realty and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Allwin Telecommunicatio.
Diversification Opportunities for Tianjin Realty and Allwin Telecommunicatio
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Allwin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Tianjin Realty and Allwin Telecommunicatio
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.22 times more return on investment than Allwin Telecommunicatio. However, Tianjin Realty is 1.22 times more volatile than Allwin Telecommunication Co. It trades about 0.21 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.11 per unit of risk. If you would invest 149.00 in Tianjin Realty Development on August 26, 2024 and sell it today you would earn a total of 79.00 from holding Tianjin Realty Development or generate 53.02% 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. Allwin Telecommunication Co
Performance |
| Timeline |
| Tianjin Realty Devel |
| Allwin Telecommunicatio |
Tianjin Realty and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Allwin Telecommunicatio
The main advantage of trading using opposite Tianjin Realty and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Tianjin Realty vs. Minmetals Capital Co | Tianjin Realty vs. Hengdian Entertainment Co | Tianjin Realty vs. Guocheng Mining Co | Tianjin Realty vs. Jinhui Liquor 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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