Correlation Between Tianjin Capital and Suzhou Xingye
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By analyzing existing cross correlation between Tianjin Capital Environmental and Suzhou Xingye Material, you can compare the effects of market volatilities on Tianjin Capital and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Suzhou Xingye.
Diversification Opportunities for Tianjin Capital and Suzhou Xingye
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianjin and Suzhou is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Tianjin Capital and Suzhou Xingye
Assuming the 90 days trading horizon Tianjin Capital Environmental is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Capital Environmental is 3.9 times less risky than Suzhou Xingye. The stock trades about -0.12 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 935.00 in Suzhou Xingye Material on October 30, 2024 and sell it today you would earn a total of 372.00 from holding Suzhou Xingye Material or generate 39.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Suzhou Xingye Material
Performance |
| Timeline |
| Tianjin Capital Envi |
| Suzhou Xingye Material |
Tianjin Capital and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Suzhou Xingye
The main advantage of trading using opposite Tianjin Capital and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Tianjin Capital vs. Anhui Jianghuai Automobile | Tianjin Capital vs. Shandong Polymer Biochemicals | Tianjin Capital vs. Jiangsu Phoenix Publishing | Tianjin Capital vs. Changjiang Publishing Media |
| Suzhou Xingye vs. Youyou Foods Co | Suzhou Xingye vs. Mengtian Home Group | Suzhou Xingye vs. Shandong Homey Aquatic | Suzhou Xingye vs. Yankershop 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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