Correlation Between Tianjin Realty and Fujian Oriental
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By analyzing existing cross correlation between Tianjin Realty Development and Fujian Oriental Silver, you can compare the effects of market volatilities on Tianjin Realty and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Fujian Oriental.
Diversification Opportunities for Tianjin Realty and Fujian Oriental
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Fujian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Fujian Oriental go up and down completely randomly.
Pair Corralation between Tianjin Realty and Fujian Oriental
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.31 times more return on investment than Fujian Oriental. However, Tianjin Realty is 1.31 times more volatile than Fujian Oriental Silver. It trades about 0.16 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about 0.15 per unit of risk. If you would invest 178.00 in Tianjin Realty Development on August 28, 2024 and sell it today you would earn a total of 60.00 from holding Tianjin Realty Development or generate 33.71% 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. Fujian Oriental Silver
Performance |
| Timeline |
| Tianjin Realty Devel |
| Fujian Oriental Silver |
Tianjin Realty and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Fujian Oriental
The main advantage of trading using opposite Tianjin Realty and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Tianjin Realty vs. Industrial and Commercial | Tianjin Realty vs. China Construction Bank | Tianjin Realty vs. Bank of China | Tianjin Realty vs. Agricultural Bank of |
| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. Agricultural Bank of | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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