Correlation Between Tianjin Realty and Guangdong Cellwise
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By analyzing existing cross correlation between Tianjin Realty Development and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Tianjin Realty and Guangdong Cellwise 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 Guangdong Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Guangdong Cellwise.
Diversification Opportunities for Tianjin Realty and Guangdong Cellwise
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tianjin and Guangdong is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise 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 Guangdong Cellwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Cellwise has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Guangdong Cellwise go up and down completely randomly.
Pair Corralation between Tianjin Realty and Guangdong Cellwise
Assuming the 90 days trading horizon Tianjin Realty Development is expected to under-perform the Guangdong Cellwise. In addition to that, Tianjin Realty is 1.29 times more volatile than Guangdong Cellwise Microelectronics. It trades about -0.23 of its total potential returns per unit of risk. Guangdong Cellwise Microelectronics is currently generating about -0.05 per unit of volatility. If you would invest 5,340 in Guangdong Cellwise Microelectronics on October 28, 2024 and sell it today you would lose (242.00) from holding Guangdong Cellwise Microelectronics or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Guangdong Cellwise Microelectr
Performance |
| Timeline |
| Tianjin Realty Devel |
| Guangdong Cellwise |
Tianjin Realty and Guangdong Cellwise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Guangdong Cellwise
The main advantage of trading using opposite Tianjin Realty and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Guangdong Cellwise 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 Guangdong Cellwise will offset losses from the drop in Guangdong Cellwise's long position.| Tianjin Realty vs. Allgens Medical Technology | Tianjin Realty vs. Double Medical Technology | Tianjin Realty vs. Yili Chuanning Biotechnology | Tianjin Realty vs. APT Medical |
| Guangdong Cellwise vs. Success Electronics | Guangdong Cellwise vs. Sihui Fuji Electronics | Guangdong Cellwise vs. Guangdong Jingyi Metal | Guangdong Cellwise vs. Shengda Mining 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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