Correlation Between TianJin 712 and Zhonghang Electronic
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By analyzing existing cross correlation between TianJin 712 Communication and Zhonghang Electronic Measuring, you can compare the effects of market volatilities on TianJin 712 and Zhonghang Electronic 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 Zhonghang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Zhonghang Electronic.
Diversification Opportunities for TianJin 712 and Zhonghang Electronic
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TianJin and Zhonghang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Zhonghang Electronic Measuring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghang Electronic 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 Zhonghang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghang Electronic has no effect on the direction of TianJin 712 i.e., TianJin 712 and Zhonghang Electronic go up and down completely randomly.
Pair Corralation between TianJin 712 and Zhonghang Electronic
Assuming the 90 days trading horizon TianJin 712 Communication is expected to under-perform the Zhonghang Electronic. But the stock apears to be less risky and, when comparing its historical volatility, TianJin 712 Communication is 1.27 times less risky than Zhonghang Electronic. The stock trades about -0.04 of its potential returns per unit of risk. The Zhonghang Electronic Measuring is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,177 in Zhonghang Electronic Measuring on November 5, 2024 and sell it today you would earn a total of 1,423 from holding Zhonghang Electronic Measuring or generate 27.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Zhonghang Electronic Measuring
Performance |
| Timeline |
| TianJin 712 Communication |
| Zhonghang Electronic |
TianJin 712 and Zhonghang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Zhonghang Electronic
The main advantage of trading using opposite TianJin 712 and Zhonghang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Zhonghang Electronic 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 Zhonghang Electronic will offset losses from the drop in Zhonghang Electronic's long position.| TianJin 712 vs. JuneYao Dairy Co | TianJin 712 vs. Yan Tai Shuang | TianJin 712 vs. Guangzhou Restaurants Group | TianJin 712 vs. Ligao Foods CoLtd |
| Zhonghang Electronic vs. Jinling Hotel Corp | Zhonghang Electronic vs. Cultural Investment Holdings | Zhonghang Electronic vs. Luyin Investment Group | Zhonghang Electronic vs. Hangzhou Pinming Software |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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