Correlation Between Tianjin Realty and Grinm Advanced
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By analyzing existing cross correlation between Tianjin Realty Development and Grinm Advanced Materials, you can compare the effects of market volatilities on Tianjin Realty and Grinm Advanced 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 Grinm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Grinm Advanced.
Diversification Opportunities for Tianjin Realty and Grinm Advanced
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Grinm is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Grinm Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grinm Advanced Materials 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 Grinm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grinm Advanced Materials has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Grinm Advanced go up and down completely randomly.
Pair Corralation between Tianjin Realty and Grinm Advanced
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 0.74 times more return on investment than Grinm Advanced. However, Tianjin Realty Development is 1.36 times less risky than Grinm Advanced. It trades about 0.27 of its potential returns per unit of risk. Grinm Advanced Materials is currently generating about -0.01 per unit of risk. If you would invest 241.00 in Tianjin Realty Development on September 14, 2024 and sell it today you would earn a total of 75.00 from holding Tianjin Realty Development or generate 31.12% 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. Grinm Advanced Materials
Performance |
| Timeline |
| Tianjin Realty Devel |
| Grinm Advanced Materials |
Tianjin Realty and Grinm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Grinm Advanced
The main advantage of trading using opposite Tianjin Realty and Grinm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Grinm Advanced 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 Grinm Advanced will offset losses from the drop in Grinm Advanced's long position.| Tianjin Realty vs. Zhejiang Xiantong RubberPlastic | Tianjin Realty vs. Spring Airlines Co | Tianjin Realty vs. Jiangsu Yanghe Brewery | Tianjin Realty vs. Juneyao Airlines |
| Grinm Advanced vs. Nanjing Putian Telecommunications | Grinm Advanced vs. Tianjin Realty Development | Grinm Advanced vs. Kangyue Technology Co | Grinm Advanced vs. Shenzhen Hifuture Electric |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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