Correlation Between Tianjin Realty and Western Mining
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By analyzing existing cross correlation between Tianjin Realty Development and Western Mining Co, you can compare the effects of market volatilities on Tianjin Realty and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Western Mining.
Diversification Opportunities for Tianjin Realty and Western Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Western is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Western Mining go up and down completely randomly.
Pair Corralation between Tianjin Realty and Western Mining
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 2.79 times more return on investment than Western Mining. However, Tianjin Realty is 2.79 times more volatile than Western Mining Co. It trades about 0.16 of its potential returns per unit of risk. Western Mining Co is currently generating about -0.19 per unit of risk. If you would invest 204.00 in Tianjin Realty Development on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Tianjin Realty Development or generate 16.67% 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. Western Mining Co
Performance |
| Timeline |
| Tianjin Realty Devel |
| Western Mining |
Tianjin Realty and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Western Mining
The main advantage of trading using opposite Tianjin Realty and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining'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 |
| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining vs. Shandong Gold Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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