Correlation Between Tianjin Realty and Shandong Homey
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By analyzing existing cross correlation between Tianjin Realty Development and Shandong Homey Aquatic, you can compare the effects of market volatilities on Tianjin Realty and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Shandong Homey.
Diversification Opportunities for Tianjin Realty and Shandong Homey
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Shandong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Shandong Homey go up and down completely randomly.
Pair Corralation between Tianjin Realty and Shandong Homey
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.59 times more return on investment than Shandong Homey. However, Tianjin Realty is 1.59 times more volatile than Shandong Homey Aquatic. It trades about 0.02 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.01 per unit of risk. If you would invest 217.00 in Tianjin Realty Development on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Tianjin Realty Development or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Tianjin Realty Devel |
| Shandong Homey Aquatic |
Tianjin Realty and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Shandong Homey
The main advantage of trading using opposite Tianjin Realty and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Tianjin Realty vs. Jiangxi JDL Environmental | Tianjin Realty vs. Duzhe Publishing Media | Tianjin Realty vs. Beijing SPC Environment | Tianjin Realty vs. Heilongjiang Publishing Media |
| Shandong Homey vs. Henan Shuanghui Investment | Shandong Homey vs. Lander Sports Development | Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. Jointo Energy Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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