Correlation Between Tianjin Realty and Fuzhou Rockchip
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By analyzing existing cross correlation between Tianjin Realty Development and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Tianjin Realty and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Fuzhou Rockchip.
Diversification Opportunities for Tianjin Realty and Fuzhou Rockchip
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianjin and Fuzhou is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Tianjin Realty and Fuzhou Rockchip
Assuming the 90 days trading horizon Tianjin Realty is expected to generate 1.69 times less return on investment than Fuzhou Rockchip. In addition to that, Tianjin Realty is 1.02 times more volatile than Fuzhou Rockchip Electronics. It trades about 0.14 of its total potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.24 per unit of volatility. If you would invest 5,126 in Fuzhou Rockchip Electronics on December 4, 2024 and sell it today you would earn a total of 11,242 from holding Fuzhou Rockchip Electronics or generate 219.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Tianjin Realty Devel |
| Fuzhou Rockchip Elec |
Tianjin Realty and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Fuzhou Rockchip
The main advantage of trading using opposite Tianjin Realty and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Tianjin Realty vs. Beijing Bewinner Communications | Tianjin Realty vs. Chengdu B ray Media | Tianjin Realty vs. Anhui Xinhua Media | Tianjin Realty vs. Telling Telecommunication Holding |
| Fuzhou Rockchip vs. Fujian Oriental Silver | Fuzhou Rockchip vs. Changchun Engley Automobile | Fuzhou Rockchip vs. Tianjin Silvery Dragon | Fuzhou Rockchip vs. Anhui Jianghuai Automobile |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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