Correlation Between Tianjin Realty and Jiahe Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Realty Development and Jiahe Foods Industry, you can compare the effects of market volatilities on Tianjin Realty and Jiahe Foods 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 Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Jiahe Foods.
Diversification Opportunities for Tianjin Realty and Jiahe Foods
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Jiahe is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry 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 Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Jiahe Foods go up and down completely randomly.
Pair Corralation between Tianjin Realty and Jiahe Foods
Assuming the 90 days trading horizon Tianjin Realty is expected to generate 6.04 times less return on investment than Jiahe Foods. In addition to that, Tianjin Realty is 1.19 times more volatile than Jiahe Foods Industry. It trades about 0.05 of its total potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.37 per unit of volatility. If you would invest 1,168 in Jiahe Foods Industry on September 1, 2024 and sell it today you would earn a total of 433.00 from holding Jiahe Foods Industry or generate 37.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Jiahe Foods Industry
Performance |
| Timeline |
| Tianjin Realty Devel |
| Jiahe Foods Industry |
Tianjin Realty and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Jiahe Foods
The main advantage of trading using opposite Tianjin Realty and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| Tianjin Realty vs. BeiGene | Tianjin Realty vs. Kweichow Moutai Co | Tianjin Realty vs. Beijing Roborock Technology | Tianjin Realty vs. G bits Network Technology |
| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Shenzhen Hifuture Electric | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Shenyang Huitian Thermal |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |