Correlation Between Tianjin Silvery and Chenzhou Jingui
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Tianjin Silvery and Chenzhou Jingui 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 Silvery with a short position of Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Chenzhou Jingui.
Diversification Opportunities for Tianjin Silvery and Chenzhou Jingui
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Chenzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver and Tianjin Silvery 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 Silvery Dragon are associated (or correlated) with Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Chenzhou Jingui
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to under-perform the Chenzhou Jingui. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Silvery Dragon is 1.24 times less risky than Chenzhou Jingui. The stock trades about -0.03 of its potential returns per unit of risk. The Chenzhou Jingui Silver is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Chenzhou Jingui Silver on August 29, 2024 and sell it today you would earn a total of 29.00 from holding Chenzhou Jingui Silver or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Chenzhou Jingui Silver |
Tianjin Silvery and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Chenzhou Jingui
The main advantage of trading using opposite Tianjin Silvery and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Shandong Gold Mining | Tianjin Silvery vs. Rongsheng Petrochemical Co | Tianjin Silvery vs. Inner Mongolia BaoTou |
| Chenzhou Jingui vs. Hubei Dinglong Chemical | Chenzhou Jingui vs. Ningxia Younglight Chemicals | Chenzhou Jingui vs. Shaanxi Meineng Clean | Chenzhou Jingui vs. Shandong Polymer Biochemicals |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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