Correlation Between Tianjin Capital and Beijing SPC
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By analyzing existing cross correlation between Tianjin Capital Environmental and Beijing SPC Environment, you can compare the effects of market volatilities on Tianjin Capital and Beijing SPC 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 Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Beijing SPC.
Diversification Opportunities for Tianjin Capital and Beijing SPC
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Beijing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Beijing SPC go up and down completely randomly.
Pair Corralation between Tianjin Capital and Beijing SPC
Assuming the 90 days trading horizon Tianjin Capital Environmental is expected to generate 0.85 times more return on investment than Beijing SPC. However, Tianjin Capital Environmental is 1.18 times less risky than Beijing SPC. It trades about 0.03 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about 0.01 per unit of risk. If you would invest 606.00 in Tianjin Capital Environmental on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Tianjin Capital Environmental or generate 0.83% 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. Beijing SPC Environment
Performance |
| Timeline |
| Tianjin Capital Envi |
| Beijing SPC Environment |
Tianjin Capital and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Beijing SPC
The main advantage of trading using opposite Tianjin Capital and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC'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 |
| Beijing SPC vs. New Hope Dairy | Beijing SPC vs. Shenzhen Topway Video | Beijing SPC vs. Zhengzhou Qianweiyangchu Food | Beijing SPC vs. Juewei Food Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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