Correlation Between Industrial and Tianjin Capital
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By analyzing existing cross correlation between Industrial and Commercial and Tianjin Capital Environmental, you can compare the effects of market volatilities on Industrial and Tianjin Capital 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 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Tianjin Capital.
Diversification Opportunities for Industrial and Tianjin Capital
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Tianjin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Industrial i.e., Industrial and Tianjin Capital go up and down completely randomly.
Pair Corralation between Industrial and Tianjin Capital
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.73 times more return on investment than Tianjin Capital. However, Industrial and Commercial is 1.37 times less risky than Tianjin Capital. It trades about 0.07 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.03 per unit of risk. If you would invest 544.00 in Industrial and Commercial on September 1, 2024 and sell it today you would earn a total of 71.00 from holding Industrial and Commercial or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Industrial and Commercial |
| Tianjin Capital Envi |
Industrial and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Tianjin Capital
The main advantage of trading using opposite Industrial and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Tianjin Capital 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 Capital will offset losses from the drop in Tianjin Capital's long position.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| Tianjin Capital vs. Bank of China | Tianjin Capital vs. Kweichow Moutai Co | Tianjin Capital vs. PetroChina Co Ltd | Tianjin Capital vs. Bank of Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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