Correlation Between Tianjin Silvery and Xinjiang Tianshun
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Tianjin Silvery and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Xinjiang Tianshun.
Diversification Opportunities for Tianjin Silvery and Xinjiang Tianshun
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianjin and Xinjiang is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Xinjiang Tianshun
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.56 times more return on investment than Xinjiang Tianshun. However, Tianjin Silvery is 1.56 times more volatile than Xinjiang Tianshun Supply. It trades about 0.1 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about -0.13 per unit of risk. If you would invest 617.00 in Tianjin Silvery Dragon on October 24, 2024 and sell it today you would earn a total of 43.00 from holding Tianjin Silvery Dragon or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Xinjiang Tianshun Supply |
Tianjin Silvery and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Xinjiang Tianshun
The main advantage of trading using opposite Tianjin Silvery and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Tianjin Silvery vs. Queclink Wireless Solutions | Tianjin Silvery vs. Dongfeng Automobile Co | Tianjin Silvery vs. China Publishing Media | Tianjin Silvery vs. Runjian Communication Co |
| Xinjiang Tianshun vs. Duzhe Publishing Media | Xinjiang Tianshun vs. Jiangsu Phoenix Publishing | Xinjiang Tianshun vs. Shenzhen Noposion Agrochemicals | Xinjiang Tianshun vs. Miracll Chemicals Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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