Correlation Between Tianjin Capital and Tianjin Hi
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By analyzing existing cross correlation between Tianjin Capital Environmental and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Tianjin Capital and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Tianjin Hi.
Diversification Opportunities for Tianjin Capital and Tianjin Hi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Tianjin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Tianjin Hi go up and down completely randomly.
Pair Corralation between Tianjin Capital and Tianjin Hi
Assuming the 90 days trading horizon Tianjin Capital Environmental is expected to generate 0.29 times more return on investment than Tianjin Hi. However, Tianjin Capital Environmental is 3.5 times less risky than Tianjin Hi. It trades about -0.4 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.22 per unit of risk. If you would invest 620.00 in Tianjin Capital Environmental on October 12, 2024 and sell it today you would lose (63.00) from holding Tianjin Capital Environmental or give up 10.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Tianjin Capital Envi |
| Tianjin Hi Tech |
Tianjin Capital and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Tianjin Hi
The main advantage of trading using opposite Tianjin Capital and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Tianjin Capital vs. Shandong Polymer Biochemicals | Tianjin Capital vs. Wuhan Hvsen Biotechnology | Tianjin Capital vs. Shandong Sanyuan Biotechnology | Tianjin Capital vs. Beijing YanDong MicroElectronic |
| Tianjin Hi vs. Elite Color Environmental | Tianjin Hi vs. Xinjiang Beixin RoadBridge | Tianjin Hi vs. Shenzhen MYS Environmental | Tianjin Hi 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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