Correlation Between Zhejiang Xiantong and Tianjin Realty
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Xiantong RubberPlastic and Tianjin Realty Development, you can compare the effects of market volatilities on Zhejiang Xiantong and Tianjin Realty 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 Zhejiang Xiantong with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Xiantong and Tianjin Realty.
Diversification Opportunities for Zhejiang Xiantong and Tianjin Realty
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Tianjin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Xiantong RubberPlasti and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel and Zhejiang Xiantong 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 Zhejiang Xiantong RubberPlastic are associated (or correlated) with Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Zhejiang Xiantong i.e., Zhejiang Xiantong and Tianjin Realty go up and down completely randomly.
Pair Corralation between Zhejiang Xiantong and Tianjin Realty
Assuming the 90 days trading horizon Zhejiang Xiantong is expected to generate 2.3 times less return on investment than Tianjin Realty. But when comparing it to its historical volatility, Zhejiang Xiantong RubberPlastic is 1.67 times less risky than Tianjin Realty. It trades about 0.2 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 241.00 in Tianjin Realty Development on September 14, 2024 and sell it today you would earn a total of 75.00 from holding Tianjin Realty Development or generate 31.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Xiantong RubberPlasti vs. Tianjin Realty Development
Performance |
| Timeline |
| Zhejiang Xiantong |
| Tianjin Realty Devel |
Zhejiang Xiantong and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Xiantong and Tianjin Realty
The main advantage of trading using opposite Zhejiang Xiantong and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Xiantong position performs unexpectedly, Tianjin Realty 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 Realty will offset losses from the drop in Tianjin Realty's long position.| Zhejiang Xiantong vs. Jiahe Foods Industry | Zhejiang Xiantong vs. Jiangsu Financial Leasing | Zhejiang Xiantong vs. Bus Online Co | Zhejiang Xiantong vs. Youyou Foods Co |
| Tianjin Realty vs. Zhejiang Xiantong RubberPlastic | Tianjin Realty vs. Spring Airlines Co | Tianjin Realty vs. Jiangsu Yanghe Brewery | Tianjin Realty vs. Juneyao Airlines |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |