Correlation Between Tianjin Realty and Hubei Geoway
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By analyzing existing cross correlation between Tianjin Realty Development and Hubei Geoway Investment, you can compare the effects of market volatilities on Tianjin Realty and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Hubei Geoway.
Diversification Opportunities for Tianjin Realty and Hubei Geoway
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Hubei is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Hubei Geoway go up and down completely randomly.
Pair Corralation between Tianjin Realty and Hubei Geoway
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.43 times more return on investment than Hubei Geoway. However, Tianjin Realty is 1.43 times more volatile than Hubei Geoway Investment. It trades about 0.03 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about -0.03 per unit of risk. If you would invest 208.00 in Tianjin Realty Development on November 30, 2024 and sell it today you would earn a total of 37.00 from holding Tianjin Realty Development or generate 17.79% 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. Hubei Geoway Investment
Performance |
| Timeline |
| Tianjin Realty Devel |
| Hubei Geoway Investment |
Tianjin Realty and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Hubei Geoway
The main advantage of trading using opposite Tianjin Realty and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Tianjin Realty vs. Nanxing Furniture Machinery | Tianjin Realty vs. Hangzhou Zhongya Machinery | Tianjin Realty vs. Qijing Machinery | Tianjin Realty vs. Long Yuan Construction |
| Hubei Geoway vs. Kingclean Electric Co | Hubei Geoway vs. Pengxin International Mining | Hubei Geoway vs. Jiangsu Yanghe Brewery | Hubei Geoway vs. Keda Clean Energy |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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