Correlation Between Tianjin Realty and Greattown Holdings
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Realty Development and Greattown Holdings Ltd, you can compare the effects of market volatilities on Tianjin Realty and Greattown Holdings 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 Greattown Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Greattown Holdings.
Diversification Opportunities for Tianjin Realty and Greattown Holdings
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Greattown is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Greattown Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greattown Holdings 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 Greattown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greattown Holdings has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Greattown Holdings go up and down completely randomly.
Pair Corralation between Tianjin Realty and Greattown Holdings
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.76 times more return on investment than Greattown Holdings. However, Tianjin Realty is 1.76 times more volatile than Greattown Holdings Ltd. It trades about 0.06 of its potential returns per unit of risk. Greattown Holdings Ltd is currently generating about 0.07 per unit of risk. If you would invest 246.00 in Tianjin Realty Development on September 5, 2024 and sell it today you would earn a total of 9.00 from holding Tianjin Realty Development or generate 3.66% 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. Greattown Holdings Ltd
Performance |
| Timeline |
| Tianjin Realty Devel |
| Greattown Holdings |
Tianjin Realty and Greattown Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Greattown Holdings
The main advantage of trading using opposite Tianjin Realty and Greattown Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Greattown Holdings 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 Greattown Holdings will offset losses from the drop in Greattown Holdings' long position.| Tianjin Realty vs. Nanjing Putian Telecommunications | Tianjin Realty vs. Shenyang Huitian Thermal | Tianjin Realty vs. Shenzhen Changfang Light | Tianjin Realty vs. Jiangsu Xinning Modern |
| Greattown Holdings vs. Nanjing Putian Telecommunications | Greattown Holdings vs. Tianjin Realty Development | Greattown Holdings vs. Shenyang Huitian Thermal | Greattown Holdings vs. Shenzhen Changfang Light |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |