Correlation Between Tianjin Capital and Gansu Huangtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Capital Environmental and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Tianjin Capital and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Gansu Huangtai.
Diversification Opportunities for Tianjin Capital and Gansu Huangtai
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Gansu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Tianjin Capital and Gansu Huangtai
Assuming the 90 days trading horizon Tianjin Capital is expected to generate 2.04 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, Tianjin Capital Environmental is 2.04 times less risky than Gansu Huangtai. It trades about 0.02 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Gansu Huangtai Wine marketing on September 13, 2024 and sell it today you would lose (6.00) from holding Gansu Huangtai Wine marketing or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Tianjin Capital Envi |
| Gansu Huangtai Wine |
Tianjin Capital and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Gansu Huangtai
The main advantage of trading using opposite Tianjin Capital and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Tianjin Capital vs. Lutian Machinery Co | Tianjin Capital vs. China Longyuan Power | Tianjin Capital vs. PetroChina Co Ltd | Tianjin Capital vs. Bank of China |
| Gansu Huangtai vs. Tianjin Capital Environmental | Gansu Huangtai vs. Hang Xiao Steel | Gansu Huangtai vs. Zhejiang Kingland Pipeline | Gansu Huangtai vs. Sinocat Environmental Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |