Correlation Between Tianjin Realty and Cansino Biologics
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By analyzing existing cross correlation between Tianjin Realty Development and Cansino Biologics, you can compare the effects of market volatilities on Tianjin Realty and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Cansino Biologics.
Diversification Opportunities for Tianjin Realty and Cansino Biologics
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Cansino is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Cansino Biologics go up and down completely randomly.
Pair Corralation between Tianjin Realty and Cansino Biologics
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.1 times more return on investment than Cansino Biologics. However, Tianjin Realty is 1.1 times more volatile than Cansino Biologics. It trades about 0.05 of its potential returns per unit of risk. Cansino Biologics is currently generating about 0.03 per unit of risk. If you would invest 182.00 in Tianjin Realty Development on August 27, 2024 and sell it today you would earn a total of 46.00 from holding Tianjin Realty Development or generate 25.27% 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. Cansino Biologics
Performance |
| Timeline |
| Tianjin Realty Devel |
| Cansino Biologics |
Tianjin Realty and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Cansino Biologics
The main advantage of trading using opposite Tianjin Realty and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Tianjin Realty vs. Minmetals Capital Co | Tianjin Realty vs. Hengdian Entertainment Co | Tianjin Realty vs. Guocheng Mining Co | Tianjin Realty vs. Jinhui Liquor Co |
| Cansino Biologics vs. Citic Guoan Wine | Cansino Biologics vs. Yankershop Food Co | Cansino Biologics vs. Malion New Materials | Cansino Biologics vs. Gan Yuan Foods |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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