Correlation Between Tianjin Realty and Nanjing Putian
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By analyzing existing cross correlation between Tianjin Realty Development and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Tianjin Realty and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Nanjing Putian.
Diversification Opportunities for Tianjin Realty and Nanjing Putian
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tianjin and Nanjing is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Nanjing Putian go up and down completely randomly.
Pair Corralation between Tianjin Realty and Nanjing Putian
Assuming the 90 days trading horizon Tianjin Realty is expected to generate 1.25 times less return on investment than Nanjing Putian. In addition to that, Tianjin Realty is 1.13 times more volatile than Nanjing Putian Telecommunications. It trades about 0.13 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.18 per unit of volatility. If you would invest 199.00 in Nanjing Putian Telecommunications on November 2, 2024 and sell it today you would earn a total of 189.00 from holding Nanjing Putian Telecommunications or generate 94.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Tianjin Realty Devel |
| Nanjing Putian Telec |
Tianjin Realty and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Nanjing Putian
The main advantage of trading using opposite Tianjin Realty and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Tianjin Realty vs. Guocheng Mining Co | Tianjin Realty vs. Guangdong Jingyi Metal | Tianjin Realty vs. Qingdao Choho Industrial | Tianjin Realty vs. Namchow Food Group |
| Nanjing Putian vs. Shanghai Ziyan Foods | Nanjing Putian vs. Easyhome New Retail | Nanjing Putian vs. Anhui Deli Household | Nanjing Putian vs. New Hope Dairy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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