Correlation Between China State and Titan Wind
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By analyzing existing cross correlation between China State Construction and Titan Wind Energy, you can compare the effects of market volatilities on China State and Titan Wind 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 China State with a short position of Titan Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Titan Wind.
Diversification Opportunities for China State and Titan Wind
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Titan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Titan Wind Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Wind Energy and China State 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 China State Construction are associated (or correlated) with Titan Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Wind Energy has no effect on the direction of China State i.e., China State and Titan Wind go up and down completely randomly.
Pair Corralation between China State and Titan Wind
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Titan Wind. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.54 times less risky than Titan Wind. The stock trades about -0.05 of its potential returns per unit of risk. The Titan Wind Energy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 866.00 in Titan Wind Energy on September 16, 2024 and sell it today you would earn a total of 30.00 from holding Titan Wind Energy or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Titan Wind Energy
Performance |
| Timeline |
| China State Construction |
| Titan Wind Energy |
China State and Titan Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Titan Wind
The main advantage of trading using opposite China State and Titan Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Titan Wind 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 Titan Wind will offset losses from the drop in Titan Wind's long position.| China State vs. Ming Yang Smart | China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology |
| Titan Wind vs. China State Construction | Titan Wind vs. Poly Real Estate | Titan Wind vs. China Vanke Co | Titan Wind vs. China Merchants Shekou |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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