Correlation Between Caihong Display and Tianjin Hi
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By analyzing existing cross correlation between Caihong Display Devices and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Caihong Display and Tianjin Hi 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 Caihong Display with a short position of Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Tianjin Hi.
Diversification Opportunities for Caihong Display and Tianjin Hi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caihong and Tianjin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech and Caihong Display 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 Caihong Display Devices are associated (or correlated) with Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Caihong Display i.e., Caihong Display and Tianjin Hi go up and down completely randomly.
Pair Corralation between Caihong Display and Tianjin Hi
Assuming the 90 days trading horizon Caihong Display Devices is expected to under-perform the Tianjin Hi. But the stock apears to be less risky and, when comparing its historical volatility, Caihong Display Devices is 1.27 times less risky than Tianjin Hi. The stock trades about -0.08 of its potential returns per unit of risk. The Tianjin Hi Tech Development is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Tianjin Hi Tech Development on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Tianjin Hi Tech Development or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Caihong Display Devices |
| Tianjin Hi Tech |
Caihong Display and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Tianjin Hi
The main advantage of trading using opposite Caihong Display and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, Tianjin Hi 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 Hi will offset losses from the drop in Tianjin Hi's long position.| Caihong Display vs. Agricultural Bank of | Caihong Display vs. China Construction Bank | Caihong Display vs. Postal Savings Bank | Caihong Display vs. Bank of Communications |
| Tianjin Hi vs. Xinjiang Communications Construction | Tianjin Hi vs. CICT Mobile Communication | Tianjin Hi vs. Shandong Homey Aquatic | Tianjin Hi vs. Hunan Mendale Hometextile |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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