Correlation Between Changjiang Publishing and Tianjin Capital
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By analyzing existing cross correlation between Changjiang Publishing Media and Tianjin Capital Environmental, you can compare the effects of market volatilities on Changjiang Publishing and Tianjin Capital 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 Changjiang Publishing with a short position of Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Tianjin Capital.
Diversification Opportunities for Changjiang Publishing and Tianjin Capital
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Changjiang and Tianjin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi and Changjiang Publishing 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 Changjiang Publishing Media are associated (or correlated) with Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Tianjin Capital go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Tianjin Capital
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to under-perform the Tianjin Capital. In addition to that, Changjiang Publishing is 1.79 times more volatile than Tianjin Capital Environmental. It trades about -0.04 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about -0.03 per unit of volatility. If you would invest 577.00 in Tianjin Capital Environmental on November 7, 2024 and sell it today you would lose (3.00) from holding Tianjin Capital Environmental or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Changjiang Publishing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Tianjin Capital Envi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Changjiang Publishing and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Tianjin Capital
The main advantage of trading using opposite Changjiang Publishing and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Tianjin Capital 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 Capital will offset losses from the drop in Tianjin Capital's long position.The idea behind Changjiang Publishing Media and Tianjin Capital Environmental pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Valuation module to check real value of public entities based on technical and fundamental data.
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