Correlation Between Tianjin Realty and Xingguang Agricultural
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By analyzing existing cross correlation between Tianjin Realty Development and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Tianjin Realty and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Xingguang Agricultural.
Diversification Opportunities for Tianjin Realty and Xingguang Agricultural
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Xingguang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Tianjin Realty and Xingguang Agricultural
Assuming the 90 days trading horizon Tianjin Realty Development is expected to under-perform the Xingguang Agricultural. In addition to that, Tianjin Realty is 2.09 times more volatile than Xingguang Agricultural Mach. It trades about -0.04 of its total potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.14 per unit of volatility. If you would invest 862.00 in Xingguang Agricultural Mach on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Xingguang Agricultural Mach or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Tianjin Realty Devel |
| Xingguang Agricultural |
Tianjin Realty and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Xingguang Agricultural
The main advantage of trading using opposite Tianjin Realty and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Tianjin Realty vs. Jiangxi JDL Environmental | Tianjin Realty vs. Duzhe Publishing Media | Tianjin Realty vs. Beijing SPC Environment | Tianjin Realty vs. Heilongjiang Publishing Media |
| Xingguang Agricultural vs. Cultural Investment Holdings | Xingguang Agricultural vs. Gome Telecom Equipment | Xingguang Agricultural vs. Bus Online Co | Xingguang Agricultural vs. Holitech Technology Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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