Correlation Between Tianjin Realty and Datang Telecom
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By analyzing existing cross correlation between Tianjin Realty Development and Datang Telecom Technology, you can compare the effects of market volatilities on Tianjin Realty and Datang Telecom 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 Datang Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Datang Telecom.
Diversification Opportunities for Tianjin Realty and Datang Telecom
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Datang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Datang Telecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang Telecom Technology 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 Datang Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang Telecom Technology has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Datang Telecom go up and down completely randomly.
Pair Corralation between Tianjin Realty and Datang Telecom
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.07 times more return on investment than Datang Telecom. However, Tianjin Realty is 1.07 times more volatile than Datang Telecom Technology. It trades about 0.05 of its potential returns per unit of risk. Datang Telecom Technology is currently generating about -0.41 per unit of risk. If you would invest 226.00 in Tianjin Realty Development on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Tianjin Realty Development or generate 3.1% 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. Datang Telecom Technology
Performance |
| Timeline |
| Tianjin Realty Devel |
| Datang Telecom Technology |
Tianjin Realty and Datang Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Datang Telecom
The main advantage of trading using opposite Tianjin Realty and Datang Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Datang Telecom 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 Datang Telecom will offset losses from the drop in Datang Telecom'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 |
| Datang Telecom vs. Industrial and Commercial | Datang Telecom vs. Kweichow Moutai Co | Datang Telecom vs. Agricultural Bank of | Datang Telecom vs. China Mobile Limited |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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