Correlation Between Tianjin Realty and Jiangsu Zhongtian
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By analyzing existing cross correlation between Tianjin Realty Development and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Tianjin Realty and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Jiangsu Zhongtian.
Diversification Opportunities for Tianjin Realty and Jiangsu Zhongtian
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Tianjin Realty and Jiangsu Zhongtian
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 2.59 times more return on investment than Jiangsu Zhongtian. However, Tianjin Realty is 2.59 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.17 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.09 per unit of risk. If you would invest 238.00 in Tianjin Realty Development on September 26, 2024 and sell it today you would earn a total of 34.00 from holding Tianjin Realty Development or generate 14.29% 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. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Tianjin Realty Devel |
| Jiangsu Zhongtian |
Tianjin Realty and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Jiangsu Zhongtian
The main advantage of trading using opposite Tianjin Realty and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Tianjin Realty vs. PetroChina Co Ltd | Tianjin Realty vs. China Mobile Limited | Tianjin Realty vs. CNOOC Limited | Tianjin Realty vs. Ping An Insurance |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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