Correlation Between TianJin 712 and Shantui Construction
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By analyzing existing cross correlation between TianJin 712 Communication and Shantui Construction Machinery, you can compare the effects of market volatilities on TianJin 712 and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Shantui Construction.
Diversification Opportunities for TianJin 712 and Shantui Construction
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between TianJin and Shantui is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of TianJin 712 i.e., TianJin 712 and Shantui Construction go up and down completely randomly.
Pair Corralation between TianJin 712 and Shantui Construction
Assuming the 90 days trading horizon TianJin 712 Communication is expected to under-perform the Shantui Construction. In addition to that, TianJin 712 is 1.87 times more volatile than Shantui Construction Machinery. It trades about -0.34 of its total potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.07 per unit of volatility. If you would invest 971.00 in Shantui Construction Machinery on October 12, 2024 and sell it today you would earn a total of 23.00 from holding Shantui Construction Machinery or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Shantui Construction Machinery
Performance |
| Timeline |
| TianJin 712 Communication |
| Shantui Construction |
TianJin 712 and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Shantui Construction
The main advantage of trading using opposite TianJin 712 and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| TianJin 712 vs. Kweichow Moutai Co | TianJin 712 vs. NAURA Technology Group | TianJin 712 vs. Zhejiang Orient Gene | TianJin 712 vs. APT Medical |
| Shantui Construction vs. BYD Co Ltd | Shantui Construction vs. China Mobile Limited | Shantui Construction vs. Agricultural Bank of | Shantui Construction vs. Industrial and Commercial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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