Correlation Between TianJin 712 and Hubei Yingtong
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By analyzing existing cross correlation between TianJin 712 Communication and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on TianJin 712 and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Hubei Yingtong.
Diversification Opportunities for TianJin 712 and Hubei Yingtong
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between TianJin and Hubei is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of TianJin 712 i.e., TianJin 712 and Hubei Yingtong go up and down completely randomly.
Pair Corralation between TianJin 712 and Hubei Yingtong
Assuming the 90 days trading horizon TianJin 712 Communication is expected to generate 0.67 times more return on investment than Hubei Yingtong. However, TianJin 712 Communication is 1.49 times less risky than Hubei Yingtong. It trades about 0.3 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about -0.11 per unit of risk. If you would invest 1,618 in TianJin 712 Communication on December 6, 2024 and sell it today you would earn a total of 339.00 from holding TianJin 712 Communication or generate 20.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| TianJin 712 Communication |
| Hubei Yingtong Telec |
TianJin 712 and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Hubei Yingtong
The main advantage of trading using opposite TianJin 712 and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| TianJin 712 vs. Shanghai Xinhua Media | TianJin 712 vs. Hengli Petrochemical Co | TianJin 712 vs. Miracll Chemicals Co | TianJin 712 vs. Guizhou Chanhen Chemical |
| Hubei Yingtong vs. Jiangsu Jinling Sports | Hubei Yingtong vs. Guangdong Jingyi Metal | Hubei Yingtong vs. Zhejiang Kingland Pipeline | Hubei Yingtong vs. Guangzhou Shangpin Home |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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