Correlation Between Tianjin Capital and Sinosteel Engineering
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By analyzing existing cross correlation between Tianjin Capital Environmental and Sinosteel Engineering and, you can compare the effects of market volatilities on Tianjin Capital and Sinosteel Engineering 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 Tianjin Capital with a short position of Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Sinosteel Engineering.
Diversification Opportunities for Tianjin Capital and Sinosteel Engineering
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Sinosteel is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and and Tianjin Capital 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 Tianjin Capital Environmental are associated (or correlated) with Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Tianjin Capital and Sinosteel Engineering
Assuming the 90 days trading horizon Tianjin Capital is expected to generate 8.98 times less return on investment than Sinosteel Engineering. But when comparing it to its historical volatility, Tianjin Capital Environmental is 1.45 times less risky than Sinosteel Engineering. It trades about 0.03 of its potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 649.00 in Sinosteel Engineering and on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Sinosteel Engineering and or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Sinosteel Engineering and
Performance |
| Timeline |
| Tianjin Capital Envi |
| Sinosteel Engineering and |
Tianjin Capital and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Sinosteel Engineering
The main advantage of trading using opposite Tianjin Capital and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Tianjin Capital vs. Bank of China | Tianjin Capital vs. Kweichow Moutai Co | Tianjin Capital vs. PetroChina Co Ltd | Tianjin Capital vs. Bank of Communications |
| Sinosteel Engineering vs. Industrial Securities Co | Sinosteel Engineering vs. Western Metal Materials | Sinosteel Engineering vs. Shandong Huifa Foodstuff | Sinosteel Engineering vs. Sichuan Yahua Industrial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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