Correlation Between Tianjin Realty and Beijing SuperMap
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By analyzing existing cross correlation between Tianjin Realty Development and Beijing SuperMap Software, you can compare the effects of market volatilities on Tianjin Realty and Beijing SuperMap 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 Beijing SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Beijing SuperMap.
Diversification Opportunities for Tianjin Realty and Beijing SuperMap
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 Beijing SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Beijing SuperMap go up and down completely randomly.
Pair Corralation between Tianjin Realty and Beijing SuperMap
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.1 times more return on investment than Beijing SuperMap. However, Tianjin Realty is 1.1 times more volatile than Beijing SuperMap Software. It trades about 0.05 of its potential returns per unit of risk. Beijing SuperMap Software is currently generating about 0.01 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 | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Beijing SuperMap Software
Performance |
| Timeline |
| Tianjin Realty Devel |
| Beijing SuperMap Software |
Tianjin Realty and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Beijing SuperMap
The main advantage of trading using opposite Tianjin Realty and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Beijing SuperMap 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 Beijing SuperMap will offset losses from the drop in Beijing SuperMap'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 |
| Beijing SuperMap vs. Nanjing Putian Telecommunications | Beijing SuperMap vs. Tianjin Realty Development | Beijing SuperMap vs. Kangyue Technology Co | Beijing SuperMap 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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