Correlation Between Zhongtong Guomai and Tianjin Realty
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Tianjin Realty Development, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Tianjin Realty.
Diversification Opportunities for Zhongtong Guomai and Tianjin Realty
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongtong and Tianjin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Tianjin Realty go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Tianjin Realty
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Tianjin Realty. In addition to that, Zhongtong Guomai is 1.65 times more volatile than Tianjin Realty Development. It trades about -0.22 of its total potential returns per unit of risk. Tianjin Realty Development is currently generating about -0.32 per unit of volatility. If you would invest 295.00 in Tianjin Realty Development on October 14, 2024 and sell it today you would lose (79.00) from holding Tianjin Realty Development or give up 26.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Tianjin Realty Development
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Tianjin Realty Devel |
Zhongtong Guomai and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Tianjin Realty
The main advantage of trading using opposite Zhongtong Guomai and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Zhejiang Publishing Media | Zhongtong Guomai vs. COL Digital Publishing | Zhongtong Guomai vs. Xinhua Winshare Publishing | Zhongtong Guomai vs. Guangzhou KingTeller Technology |
| Tianjin Realty vs. RoadMain T Co | Tianjin Realty vs. Shenzhen AV Display Co | Tianjin Realty vs. China Sports Industry | Tianjin Realty vs. Shanghai Broadband Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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