Correlation Between Fujian Oriental and Tianjin Silvery
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By analyzing existing cross correlation between Fujian Oriental Silver and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Fujian Oriental and Tianjin Silvery 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 Fujian Oriental with a short position of Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Tianjin Silvery.
Diversification Opportunities for Fujian Oriental and Tianjin Silvery
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Tianjin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon and Fujian Oriental 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 Fujian Oriental Silver are associated (or correlated) with Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Fujian Oriental and Tianjin Silvery
Assuming the 90 days trading horizon Fujian Oriental is expected to generate 1.57 times less return on investment than Tianjin Silvery. In addition to that, Fujian Oriental is 1.11 times more volatile than Tianjin Silvery Dragon. It trades about 0.05 of its total potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about 0.09 per unit of volatility. If you would invest 585.00 in Tianjin Silvery Dragon on September 4, 2024 and sell it today you would earn a total of 24.00 from holding Tianjin Silvery Dragon or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Tianjin Silvery Dragon
Performance |
| Timeline |
| Fujian Oriental Silver |
| Tianjin Silvery Dragon |
Fujian Oriental and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Tianjin Silvery
The main advantage of trading using opposite Fujian Oriental and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Tianjin Silvery 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 Silvery will offset losses from the drop in Tianjin Silvery's long position.| Fujian Oriental vs. Datang HuaYin Electric | Fujian Oriental vs. Dongguan Tarry Electronics | Fujian Oriental vs. Leaguer Shenzhen MicroElectronics | Fujian Oriental vs. Digital China Information |
| Tianjin Silvery vs. Fujian Longzhou Transportation | Tianjin Silvery vs. Kunshan Guoli Electronic | Tianjin Silvery vs. Zhejiang Kingland Pipeline | Tianjin Silvery vs. Hubeiyichang Transportation Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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