Correlation Between Sunny Loan and Tianjin Capital
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sunny Loan Top and Tianjin Capital Environmental, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Tianjin Capital.
Diversification Opportunities for Sunny Loan and Tianjin Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunny and Tianjin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top 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 Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and Tianjin Capital go up and down completely randomly.
Pair Corralation between Sunny Loan and Tianjin Capital
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Tianjin Capital. In addition to that, Sunny Loan is 1.91 times more volatile than Tianjin Capital Environmental. It trades about -0.13 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.06 per unit of volatility. If you would invest 602.00 in Tianjin Capital Environmental on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Tianjin Capital Environmental or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Sunny Loan Top |
| Tianjin Capital Envi |
Sunny Loan and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Tianjin Capital
The main advantage of trading using opposite Sunny Loan and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. PetroChina Co Ltd | Sunny Loan vs. China Mobile Limited | Sunny Loan vs. Industrial and Commercial | Sunny Loan vs. China Life Insurance |
| Tianjin Capital vs. Hangzhou Coco Healthcare | Tianjin Capital vs. Advanced Technology Materials | Tianjin Capital vs. Sunny Loan Top | Tianjin Capital vs. Meinian Onehealth Healthcare |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |