Correlation Between TianJin 712 and Shenzhen Centralcon
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By analyzing existing cross correlation between TianJin 712 Communication and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on TianJin 712 and Shenzhen Centralcon 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 TianJin 712 with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Shenzhen Centralcon.
Diversification Opportunities for TianJin 712 and Shenzhen Centralcon
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TianJin and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and TianJin 712 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 TianJin 712 Communication are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of TianJin 712 i.e., TianJin 712 and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between TianJin 712 and Shenzhen Centralcon
Assuming the 90 days trading horizon TianJin 712 is expected to generate 1.03 times less return on investment than Shenzhen Centralcon. In addition to that, TianJin 712 is 1.64 times more volatile than Shenzhen Centralcon Investment. It trades about 0.13 of its total potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.21 per unit of volatility. If you would invest 503.00 in Shenzhen Centralcon Investment on September 15, 2024 and sell it today you would earn a total of 60.00 from holding Shenzhen Centralcon Investment or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| TianJin 712 Communication |
| Shenzhen Centralcon |
TianJin 712 and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Shenzhen Centralcon
The main advantage of trading using opposite TianJin 712 and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| TianJin 712 vs. Industrial and Commercial | TianJin 712 vs. China Construction Bank | TianJin 712 vs. Bank of China | TianJin 712 vs. Agricultural Bank of |
| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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