Correlation Between Tianjin Capital and Shengyuan Environmental
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By analyzing existing cross correlation between Tianjin Capital Environmental and Shengyuan Environmental Protection, you can compare the effects of market volatilities on Tianjin Capital and Shengyuan Environmental 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 Shengyuan Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Shengyuan Environmental.
Diversification Opportunities for Tianjin Capital and Shengyuan Environmental
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Shengyuan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Shengyuan Environmental Protec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyuan Environmental 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 Shengyuan Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyuan Environmental has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Shengyuan Environmental go up and down completely randomly.
Pair Corralation between Tianjin Capital and Shengyuan Environmental
Assuming the 90 days trading horizon Tianjin Capital Environmental is expected to under-perform the Shengyuan Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Capital Environmental is 1.44 times less risky than Shengyuan Environmental. The stock trades about -0.09 of its potential returns per unit of risk. The Shengyuan Environmental Protection is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,416 in Shengyuan Environmental Protection on August 28, 2024 and sell it today you would lose (28.00) from holding Shengyuan Environmental Protection or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Shengyuan Environmental Protec
Performance |
| Timeline |
| Tianjin Capital Envi |
| Shengyuan Environmental |
Tianjin Capital and Shengyuan Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Shengyuan Environmental
The main advantage of trading using opposite Tianjin Capital and Shengyuan Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Shengyuan Environmental 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 Shengyuan Environmental will offset losses from the drop in Shengyuan Environmental's long position.| Tianjin Capital vs. China Petroleum Chemical | Tianjin Capital vs. PetroChina Co Ltd | Tianjin Capital vs. China State Construction | Tianjin Capital vs. China Railway Group |
| Shengyuan Environmental vs. China Petroleum Chemical | Shengyuan Environmental vs. PetroChina Co Ltd | Shengyuan Environmental vs. China State Construction | Shengyuan Environmental vs. China Railway Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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