Correlation Between Tianjin Realty and Hubei Huaqiang
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By analyzing existing cross correlation between Tianjin Realty Development and Hubei Huaqiang High Tech, you can compare the effects of market volatilities on Tianjin Realty and Hubei Huaqiang 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 Hubei Huaqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Hubei Huaqiang.
Diversification Opportunities for Tianjin Realty and Hubei Huaqiang
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Hubei is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Hubei Huaqiang High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Huaqiang High 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 Hubei Huaqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Huaqiang High has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Hubei Huaqiang go up and down completely randomly.
Pair Corralation between Tianjin Realty and Hubei Huaqiang
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.74 times more return on investment than Hubei Huaqiang. However, Tianjin Realty is 1.74 times more volatile than Hubei Huaqiang High Tech. It trades about 0.02 of its potential returns per unit of risk. Hubei Huaqiang High Tech is currently generating about -0.01 per unit of risk. If you would invest 246.00 in Tianjin Realty Development on September 3, 2024 and sell it today you would lose (13.00) from holding Tianjin Realty Development or give up 5.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Hubei Huaqiang High Tech
Performance |
| Timeline |
| Tianjin Realty Devel |
| Hubei Huaqiang High |
Tianjin Realty and Hubei Huaqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Hubei Huaqiang
The main advantage of trading using opposite Tianjin Realty and Hubei Huaqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Hubei Huaqiang 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 Hubei Huaqiang will offset losses from the drop in Hubei Huaqiang'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 |
| Hubei Huaqiang vs. Xinjiang Communications Construction | Hubei Huaqiang vs. Zhongtong Guomai Communication | Hubei Huaqiang vs. Zhejiang Publishing Media | Hubei Huaqiang vs. Northern United Publishing |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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