Correlation Between Tianjin Realty and Suwen Electric
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By analyzing existing cross correlation between Tianjin Realty Development and Suwen Electric Energy, you can compare the effects of market volatilities on Tianjin Realty and Suwen Electric 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 Suwen Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Suwen Electric.
Diversification Opportunities for Tianjin Realty and Suwen Electric
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Suwen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Suwen Electric Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suwen Electric Energy 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 Suwen Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suwen Electric Energy has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Suwen Electric go up and down completely randomly.
Pair Corralation between Tianjin Realty and Suwen Electric
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 2.21 times more return on investment than Suwen Electric. However, Tianjin Realty is 2.21 times more volatile than Suwen Electric Energy. It trades about 0.1 of its potential returns per unit of risk. Suwen Electric Energy is currently generating about -0.08 per unit of risk. If you would invest 255.00 in Tianjin Realty Development on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Tianjin Realty Development or generate 8.63% 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. Suwen Electric Energy
Performance |
| Timeline |
| Tianjin Realty Devel |
| Suwen Electric Energy |
Tianjin Realty and Suwen Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Suwen Electric
The main advantage of trading using opposite Tianjin Realty and Suwen Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Suwen Electric 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 Suwen Electric will offset losses from the drop in Suwen Electric's long position.| Tianjin Realty vs. Hengerda New Materials | Tianjin Realty vs. China Railway Materials | Tianjin Realty vs. Guangzhou Tinci Materials | Tianjin Realty vs. Super Dragon Engineering Plastics |
| Suwen Electric vs. Xiangyu Medical Co | Suwen Electric vs. Blue Sail Medical | Suwen Electric vs. Guangzhou Boji Medical | Suwen Electric vs. Hengkang Medical Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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