Correlation Between Tangshan Port and Industrial
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By analyzing existing cross correlation between Tangshan Port Group and Industrial and Commercial, you can compare the effects of market volatilities on Tangshan Port and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangshan Port and Industrial.
Diversification Opportunities for Tangshan Port and Industrial
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tangshan and Industrial is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tangshan Port Group and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Tangshan Port i.e., Tangshan Port and Industrial go up and down completely randomly.
Pair Corralation between Tangshan Port and Industrial
Assuming the 90 days trading horizon Tangshan Port is expected to generate 1.19 times less return on investment than Industrial. In addition to that, Tangshan Port is 1.46 times more volatile than Industrial and Commercial. It trades about 0.14 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.24 per unit of volatility. If you would invest 600.00 in Industrial and Commercial on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Industrial and Commercial or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tangshan Port Group vs. Industrial and Commercial
Performance |
| Timeline |
| Tangshan Port Group |
| Industrial and Commercial |
Tangshan Port and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangshan Port and Industrial
The main advantage of trading using opposite Tangshan Port and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangshan Port position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Tangshan Port vs. Lier Chemical Co | Tangshan Port vs. Dhc Software Co | Tangshan Port vs. Miracll Chemicals Co | Tangshan Port vs. Xilong Chemical Co |
| Industrial vs. Pengxin International Mining | Industrial vs. Qilu Bank Co | Industrial vs. Tibet Huayu Mining | Industrial vs. Chengtun Mining 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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