Correlation Between Tianjin Realty and Beijing Enlight
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By analyzing existing cross correlation between Tianjin Realty Development and Beijing Enlight Media, you can compare the effects of market volatilities on Tianjin Realty and Beijing Enlight 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 Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Beijing Enlight.
Diversification Opportunities for Tianjin Realty and Beijing Enlight
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Beijing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media 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 Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Beijing Enlight go up and down completely randomly.
Pair Corralation between Tianjin Realty and Beijing Enlight
Assuming the 90 days trading horizon Tianjin Realty is expected to generate 1.29 times less return on investment than Beijing Enlight. In addition to that, Tianjin Realty is 1.26 times more volatile than Beijing Enlight Media. It trades about 0.02 of its total potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.03 per unit of volatility. If you would invest 792.00 in Beijing Enlight Media on October 26, 2024 and sell it today you would earn a total of 158.00 from holding Beijing Enlight Media or generate 19.95% 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 Enlight Media
Performance |
| Timeline |
| Tianjin Realty Devel |
| Beijing Enlight Media |
Tianjin Realty and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Beijing Enlight
The main advantage of trading using opposite Tianjin Realty and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Beijing Enlight 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 Enlight will offset losses from the drop in Beijing Enlight's long position.| Tianjin Realty vs. Everjoy Health Group | Tianjin Realty vs. Sanbo Hospital Management | Tianjin Realty vs. Innovative Medical Management | Tianjin Realty vs. Chison Medical Technologies |
| Beijing Enlight vs. China State Construction | Beijing Enlight vs. Poly Real Estate | Beijing Enlight vs. China Vanke Co | Beijing Enlight vs. China Merchants Shekou |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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