Correlation Between Tianjin Realty and Jiangyin Jianghua
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By analyzing existing cross correlation between Tianjin Realty Development and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Tianjin Realty and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Jiangyin Jianghua.
Diversification Opportunities for Tianjin Realty and Jiangyin Jianghua
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Jiangyin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Tianjin Realty and Jiangyin Jianghua
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 0.94 times more return on investment than Jiangyin Jianghua. However, Tianjin Realty Development is 1.06 times less risky than Jiangyin Jianghua. It trades about 0.23 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.12 per unit of risk. If you would invest 244.00 in Tianjin Realty Development on September 13, 2024 and sell it today you would earn a total of 61.00 from holding Tianjin Realty Development or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tianjin Realty Development vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Tianjin Realty Devel |
| Jiangyin Jianghua |
Tianjin Realty and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Jiangyin Jianghua
The main advantage of trading using opposite Tianjin Realty and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Tianjin Realty vs. China Life Insurance | Tianjin Realty vs. Cinda Securities Co | Tianjin Realty vs. Piotech Inc A | Tianjin Realty vs. Dongxing Sec Co |
| Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Tianjin Realty Development | Jiangyin Jianghua vs. Kangyue Technology Co | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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