Correlation Between Xinjiang Tianrun and Tianjin Realty
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Tianjin Realty Development, you can compare the effects of market volatilities on Xinjiang Tianrun and Tianjin Realty 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 Xinjiang Tianrun with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Tianjin Realty.
Diversification Opportunities for Xinjiang Tianrun and Tianjin Realty
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Tianjin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy are associated (or correlated) with Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Tianjin Realty go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Tianjin Realty
Assuming the 90 days trading horizon Xinjiang Tianrun is expected to generate 1.82 times less return on investment than Tianjin Realty. But when comparing it to its historical volatility, Xinjiang Tianrun Dairy is 2.44 times less risky than Tianjin Realty. It trades about 0.2 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Tianjin Realty Development on August 31, 2024 and sell it today you would earn a total of 32.00 from holding Tianjin Realty Development or generate 15.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Tianjin Realty Development
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Tianjin Realty Devel |
Xinjiang Tianrun and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Tianjin Realty
The main advantage of trading using opposite Xinjiang Tianrun and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty's long position.| Xinjiang Tianrun vs. Lutian Machinery Co | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun vs. Gansu Jiu Steel |
| Tianjin Realty vs. Xinjiang Tianrun Dairy | Tianjin Realty vs. Zhengzhou Qianweiyangchu Food | Tianjin Realty vs. Jiajia Food Group | Tianjin Realty vs. Guocheng 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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