Correlation Between Tianjin Realty and China World
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By analyzing existing cross correlation between Tianjin Realty Development and China World Trade, you can compare the effects of market volatilities on Tianjin Realty and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and China World.
Diversification Opportunities for Tianjin Realty and China World
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianjin and China is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and China World go up and down completely randomly.
Pair Corralation between Tianjin Realty and China World
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 2.41 times more return on investment than China World. However, Tianjin Realty is 2.41 times more volatile than China World Trade. It trades about 0.27 of its potential returns per unit of risk. China World Trade is currently generating about -0.01 per unit of risk. If you would invest 130.00 in Tianjin Realty Development on September 12, 2024 and sell it today you would earn a total of 147.00 from holding Tianjin Realty Development or generate 113.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Tianjin Realty Development vs. China World Trade
Performance |
| Timeline |
| Tianjin Realty Devel |
| China World Trade |
Tianjin Realty and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and China World
The main advantage of trading using opposite Tianjin Realty and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, China World 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 China World will offset losses from the drop in China World'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 |
| China World vs. China Life Insurance | China World vs. Cinda Securities Co | China World vs. Piotech Inc A | China World vs. Dongxing Sec Co |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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