Correlation Between Tianjin Realty and Xiangyu Medical
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By analyzing existing cross correlation between Tianjin Realty Development and Xiangyu Medical Co, you can compare the effects of market volatilities on Tianjin Realty and Xiangyu Medical 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 Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Xiangyu Medical.
Diversification Opportunities for Tianjin Realty and Xiangyu Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Xiangyu is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical 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 Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Tianjin Realty and Xiangyu Medical
Assuming the 90 days trading horizon Tianjin Realty is expected to generate 2.3 times less return on investment than Xiangyu Medical. In addition to that, Tianjin Realty is 1.05 times more volatile than Xiangyu Medical Co. It trades about 0.05 of its total potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.12 per unit of volatility. If you would invest 2,857 in Xiangyu Medical Co on September 1, 2024 and sell it today you would earn a total of 315.00 from holding Xiangyu Medical Co or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Realty Development vs. Xiangyu Medical Co
Performance |
| Timeline |
| Tianjin Realty Devel |
| Xiangyu Medical |
Tianjin Realty and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Realty and Xiangyu Medical
The main advantage of trading using opposite Tianjin Realty and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Xiangyu Medical 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 Xiangyu Medical will offset losses from the drop in Xiangyu Medical's 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 |
| Xiangyu Medical vs. Nanjing Putian Telecommunications | Xiangyu Medical vs. Shenzhen Hifuture Electric | Xiangyu Medical vs. Tianjin Realty Development | Xiangyu Medical 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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