Correlation Between Tianjin Capital and Shenzhen MYS
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By analyzing existing cross correlation between Tianjin Capital Environmental and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Tianjin Capital and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Shenzhen MYS.
Diversification Opportunities for Tianjin Capital and Shenzhen MYS
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Tianjin Capital and Shenzhen MYS
Assuming the 90 days trading horizon Tianjin Capital is expected to generate 12.42 times less return on investment than Shenzhen MYS. But when comparing it to its historical volatility, Tianjin Capital Environmental is 2.79 times less risky than Shenzhen MYS. It trades about 0.06 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 309.00 in Shenzhen MYS Environmental on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Shenzhen MYS Environmental or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Tianjin Capital Envi |
| Shenzhen MYS Environ |
Tianjin Capital and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Shenzhen MYS
The main advantage of trading using opposite Tianjin Capital and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Tianjin Capital vs. Hangzhou Coco Healthcare | Tianjin Capital vs. Advanced Technology Materials | Tianjin Capital vs. Sunny Loan Top | Tianjin Capital vs. Meinian Onehealth Healthcare |
| Shenzhen MYS vs. Guangdong Liantai Environmental | Shenzhen MYS vs. Harvest Fund Management | Shenzhen MYS vs. Sanbo Hospital Management | Shenzhen MYS vs. Tianjin Capital Environmental |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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