Correlation Between Tianjin Realty and Jiangsu Changfa
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By analyzing existing cross correlation between Tianjin Realty Development and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Tianjin Realty and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Jiangsu Changfa.
Diversification Opportunities for Tianjin Realty and Jiangsu Changfa
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Jiangsu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Tianjin Realty and Jiangsu Changfa
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.35 times more return on investment than Jiangsu Changfa. However, Tianjin Realty is 1.35 times more volatile than Jiangsu Changfa Refrigeration. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.01 per unit of risk. If you would invest 244.00 in Tianjin Realty Development on September 2, 2024 and sell it today you would lose (11.00) from holding Tianjin Realty Development or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Tianjin Realty Devel |
| Jiangsu Changfa Refr |
Tianjin Realty and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Jiangsu Changfa
The main advantage of trading using opposite Tianjin Realty and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Tianjin Realty vs. BeiGene | Tianjin Realty vs. Kweichow Moutai Co | Tianjin Realty vs. Beijing Roborock Technology | Tianjin Realty vs. G bits Network Technology |
| Jiangsu Changfa vs. Postal Savings Bank | Jiangsu Changfa vs. Chahua Modern Housewares | Jiangsu Changfa vs. Harbin Hatou Investment | Jiangsu Changfa vs. MayAir Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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