Correlation Between Tianjin Capital and Fuda Alloy
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By analyzing existing cross correlation between Tianjin Capital Environmental and Fuda Alloy Materials, you can compare the effects of market volatilities on Tianjin Capital and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Fuda Alloy.
Diversification Opportunities for Tianjin Capital and Fuda Alloy
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Fuda is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Fuda Alloy go up and down completely randomly.
Pair Corralation between Tianjin Capital and Fuda Alloy
Assuming the 90 days trading horizon Tianjin Capital Environmental is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Capital Environmental is 1.74 times less risky than Fuda Alloy. The stock trades about 0.0 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,469 in Fuda Alloy Materials on October 16, 2024 and sell it today you would lose (48.00) from holding Fuda Alloy Materials or give up 3.27% 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. Fuda Alloy Materials
Performance |
| Timeline |
| Tianjin Capital Envi |
| Fuda Alloy Materials |
Tianjin Capital and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Fuda Alloy
The main advantage of trading using opposite Tianjin Capital and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Tianjin Capital vs. Kingclean Electric Co | Tianjin Capital vs. Tibet Huayu Mining | Tianjin Capital vs. Guangdong Jingyi Metal | Tianjin Capital vs. JCHX Mining Management |
| Fuda Alloy vs. Shenzhen MYS Environmental | Fuda Alloy vs. Tianjin Capital Environmental | Fuda Alloy vs. Anyang Iron Steel | Fuda Alloy vs. Lecron Energy Saving |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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