Correlation Between Tianjin Realty and Shenzhen Changfang
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By analyzing existing cross correlation between Tianjin Realty Development and Shenzhen Changfang Light, you can compare the effects of market volatilities on Tianjin Realty and Shenzhen Changfang 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 Shenzhen Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Shenzhen Changfang.
Diversification Opportunities for Tianjin Realty and Shenzhen Changfang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Shenzhen Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Tianjin Realty and Shenzhen Changfang
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.09 times more return on investment than Shenzhen Changfang. However, Tianjin Realty is 1.09 times more volatile than Shenzhen Changfang Light. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Changfang Light is currently generating about 0.04 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Tianjin Realty Devel |
| Shenzhen Changfang Light |
Tianjin Realty and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Shenzhen Changfang
The main advantage of trading using opposite Tianjin Realty and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Shenzhen Changfang 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 Shenzhen Changfang will offset losses from the drop in Shenzhen Changfang'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 |
| Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. China Construction Bank | Shenzhen Changfang vs. Bank of China |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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