Correlation Between Tianjin Realty and Beijing Tongrentang
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By analyzing existing cross correlation between Tianjin Realty Development and Beijing Tongrentang Co, you can compare the effects of market volatilities on Tianjin Realty and Beijing Tongrentang 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 Tongrentang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Beijing Tongrentang.
Diversification Opportunities for Tianjin Realty and Beijing Tongrentang
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianjin and Beijing is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Beijing Tongrentang Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tongrentang 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 Tongrentang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tongrentang has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Beijing Tongrentang go up and down completely randomly.
Pair Corralation between Tianjin Realty and Beijing Tongrentang
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.54 times more return on investment than Beijing Tongrentang. However, Tianjin Realty is 1.54 times more volatile than Beijing Tongrentang Co. It trades about -0.01 of its potential returns per unit of risk. Beijing Tongrentang Co is currently generating about -0.05 per unit of risk. If you would invest 235.00 in Tianjin Realty Development on January 26, 2025 and sell it today you would lose (4.00) from holding Tianjin Realty Development or give up 1.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Beijing Tongrentang Co
Performance |
| Timeline |
| Tianjin Realty Devel |
| Beijing Tongrentang |
Tianjin Realty and Beijing Tongrentang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Beijing Tongrentang
The main advantage of trading using opposite Tianjin Realty and Beijing Tongrentang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Beijing Tongrentang 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 Tongrentang will offset losses from the drop in Beijing Tongrentang's long position.| Tianjin Realty vs. Western Superconducting Tech | Tianjin Realty vs. Niutech Environment Technology | Tianjin Realty vs. Bengang Steel Plates | Tianjin Realty vs. Changjiang Jinggong Steel |
| Beijing Tongrentang vs. Industrial and Commercial | Beijing Tongrentang vs. Agricultural Bank of | Beijing Tongrentang vs. China Construction Bank | Beijing Tongrentang 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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