Correlation Between Tianjin Realty and Guangdong Jinma
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By analyzing existing cross correlation between Tianjin Realty Development and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Tianjin Realty and Guangdong Jinma 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 Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Guangdong Jinma.
Diversification Opportunities for Tianjin Realty and Guangdong Jinma
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Tianjin Realty and Guangdong Jinma
Assuming the 90 days trading horizon Tianjin Realty is expected to generate 1.52 times less return on investment than Guangdong Jinma. In addition to that, Tianjin Realty is 1.11 times more volatile than Guangdong Jinma Entertainment. It trades about 0.05 of its total potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.09 per unit of volatility. If you would invest 1,558 in Guangdong Jinma Entertainment on September 1, 2024 and sell it today you would earn a total of 103.00 from holding Guangdong Jinma Entertainment or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Tianjin Realty Devel |
| Guangdong Jinma Ente |
Tianjin Realty and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Guangdong Jinma
The main advantage of trading using opposite Tianjin Realty and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma'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 |
| Guangdong Jinma vs. Nanjing Putian Telecommunications | Guangdong Jinma vs. Shenzhen Hifuture Electric | Guangdong Jinma vs. Tianjin Realty Development | Guangdong Jinma vs. Shenyang Huitian Thermal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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