Correlation Between Industrial and Tianjin Yiyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Tianjin Yiyi Hygiene, you can compare the effects of market volatilities on Industrial and Tianjin Yiyi 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 Industrial with a short position of Tianjin Yiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Tianjin Yiyi.
Diversification Opportunities for Industrial and Tianjin Yiyi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Tianjin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Tianjin Yiyi Hygiene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Yiyi Hygiene and Industrial 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 Industrial and Commercial are associated (or correlated) with Tianjin Yiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Yiyi Hygiene has no effect on the direction of Industrial i.e., Industrial and Tianjin Yiyi go up and down completely randomly.
Pair Corralation between Industrial and Tianjin Yiyi
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.41 times more return on investment than Tianjin Yiyi. However, Industrial and Commercial is 2.43 times less risky than Tianjin Yiyi. It trades about 0.1 of its potential returns per unit of risk. Tianjin Yiyi Hygiene is currently generating about 0.04 per unit of risk. If you would invest 479.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 163.00 from holding Industrial and Commercial or generate 34.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Tianjin Yiyi Hygiene
Performance |
| Timeline |
| Industrial and Commercial |
| Tianjin Yiyi Hygiene |
Industrial and Tianjin Yiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Tianjin Yiyi
The main advantage of trading using opposite Industrial and Tianjin Yiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Tianjin Yiyi 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 Yiyi will offset losses from the drop in Tianjin Yiyi's long position.| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
| Tianjin Yiyi vs. Hubei Dinglong Chemical | Tianjin Yiyi vs. Liuzhou Chemical Industry | Tianjin Yiyi vs. Dymatic Chemicals | Tianjin Yiyi vs. Yangmei Chemical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |