Correlation Between Tianjin Realty and Flat Glass
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By analyzing existing cross correlation between Tianjin Realty Development and Flat Glass Group, you can compare the effects of market volatilities on Tianjin Realty and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Flat Glass.
Diversification Opportunities for Tianjin Realty and Flat Glass
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Flat is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Flat Glass go up and down completely randomly.
Pair Corralation between Tianjin Realty and Flat Glass
Assuming the 90 days trading horizon Tianjin Realty is expected to generate 1.24 times less return on investment than Flat Glass. In addition to that, Tianjin Realty is 1.2 times more volatile than Flat Glass Group. It trades about 0.1 of its total potential returns per unit of risk. Flat Glass Group is currently generating about 0.15 per unit of volatility. If you would invest 2,022 in Flat Glass Group on August 30, 2024 and sell it today you would earn a total of 538.00 from holding Flat Glass Group or generate 26.61% 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. Flat Glass Group
Performance |
| Timeline |
| Tianjin Realty Devel |
| Flat Glass Group |
Tianjin Realty and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Flat Glass
The main advantage of trading using opposite Tianjin Realty and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.| Tianjin Realty vs. Shengda Mining Co | Tianjin Realty vs. Changjiang Publishing Media | Tianjin Realty vs. Minmetals Capital Co | Tianjin Realty vs. Ping An Insurance |
| Flat Glass vs. Xiandai Investment Co | Flat Glass vs. Digital China Information | Flat Glass vs. Zhongrun Resources Investment | Flat Glass vs. Yonyou Auto Information |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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