Correlation Between Tangshan Port and Tengda Construction
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By analyzing existing cross correlation between Tangshan Port Group and Tengda Construction Group, you can compare the effects of market volatilities on Tangshan Port and Tengda Construction 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 Tangshan Port with a short position of Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangshan Port and Tengda Construction.
Diversification Opportunities for Tangshan Port and Tengda Construction
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tangshan and Tengda is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tangshan Port Group and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction and Tangshan Port 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 Tangshan Port Group are associated (or correlated) with Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Tangshan Port i.e., Tangshan Port and Tengda Construction go up and down completely randomly.
Pair Corralation between Tangshan Port and Tengda Construction
Assuming the 90 days trading horizon Tangshan Port Group is expected to generate 0.71 times more return on investment than Tengda Construction. However, Tangshan Port Group is 1.41 times less risky than Tengda Construction. It trades about -0.09 of its potential returns per unit of risk. Tengda Construction Group is currently generating about -0.38 per unit of risk. If you would invest 454.00 in Tangshan Port Group on October 9, 2024 and sell it today you would lose (14.00) from holding Tangshan Port Group or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangshan Port Group vs. Tengda Construction Group
Performance |
| Timeline |
| Tangshan Port Group |
| Tengda Construction |
Tangshan Port and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangshan Port and Tengda Construction
The main advantage of trading using opposite Tangshan Port and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangshan Port position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Tangshan Port vs. Sportsoul Co Ltd | Tangshan Port vs. Hubeiyichang Transportation Group | Tangshan Port vs. Duzhe Publishing Media | Tangshan Port vs. Hengdian Entertainment Co |
| Tengda Construction vs. Agricultural Bank of | Tengda Construction vs. Industrial and Commercial | Tengda Construction vs. Bank of China | Tengda Construction vs. PetroChina Co Ltd |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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