Correlation Between Tianjin Capital and Do Fluoride
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By analyzing existing cross correlation between Tianjin Capital Environmental and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Tianjin Capital and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Do Fluoride.
Diversification Opportunities for Tianjin Capital and Do Fluoride
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and 002407 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Do Fluoride go up and down completely randomly.
Pair Corralation between Tianjin Capital and Do Fluoride
Assuming the 90 days trading horizon Tianjin Capital is expected to generate 1.02 times less return on investment than Do Fluoride. But when comparing it to its historical volatility, Tianjin Capital Environmental is 1.47 times less risky than Do Fluoride. It trades about 0.04 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,212 in Do Fluoride Chemicals Co on September 27, 2024 and sell it today you would earn a total of 59.00 from holding Do Fluoride Chemicals Co or generate 4.87% 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. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Tianjin Capital Envi |
| Do Fluoride Chemicals |
Tianjin Capital and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Do Fluoride
The main advantage of trading using opposite Tianjin Capital and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Tianjin Capital vs. Ming Yang Smart | Tianjin Capital vs. 159681 | Tianjin Capital vs. 159005 | Tianjin Capital vs. Loctek Ergonomic Technology |
| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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