Correlation Between TianJin 712 and Industrial
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By analyzing existing cross correlation between TianJin 712 Communication and Industrial and Commercial, you can compare the effects of market volatilities on TianJin 712 and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Industrial.
Diversification Opportunities for TianJin 712 and Industrial
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TianJin and Industrial is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of TianJin 712 i.e., TianJin 712 and Industrial go up and down completely randomly.
Pair Corralation between TianJin 712 and Industrial
Assuming the 90 days trading horizon TianJin 712 Communication is expected to generate 4.1 times more return on investment than Industrial. However, TianJin 712 is 4.1 times more volatile than Industrial and Commercial. It trades about 0.13 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.24 per unit of risk. If you would invest 1,856 in TianJin 712 Communication on September 15, 2024 and sell it today you would earn a total of 191.00 from holding TianJin 712 Communication or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Industrial and Commercial
Performance |
| Timeline |
| TianJin 712 Communication |
| Industrial and Commercial |
TianJin 712 and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Industrial
The main advantage of trading using opposite TianJin 712 and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
| Industrial vs. Jiangsu Jinling Sports | Industrial vs. Cofco Biochemical Anhui | Industrial vs. China Sports Industry | Industrial vs. Guangzhou Restaurants Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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