Correlation Between Tianjin Silvery and Zhengzhou Yutong
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Zhengzhou Yutong Bus, you can compare the effects of market volatilities on Tianjin Silvery and Zhengzhou Yutong 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 Zhengzhou Yutong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Zhengzhou Yutong.
Diversification Opportunities for Tianjin Silvery and Zhengzhou Yutong
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Zhengzhou is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Zhengzhou Yutong Bus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Yutong Bus 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 Zhengzhou Yutong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Yutong Bus has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Zhengzhou Yutong go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Zhengzhou Yutong
Assuming the 90 days trading horizon Tianjin Silvery is expected to generate 1.47 times less return on investment than Zhengzhou Yutong. In addition to that, Tianjin Silvery is 1.11 times more volatile than Zhengzhou Yutong Bus. It trades about 0.05 of its total potential returns per unit of risk. Zhengzhou Yutong Bus is currently generating about 0.09 per unit of volatility. If you would invest 1,323 in Zhengzhou Yutong Bus on September 4, 2024 and sell it today you would earn a total of 928.00 from holding Zhengzhou Yutong Bus or generate 70.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Zhengzhou Yutong Bus
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Zhengzhou Yutong Bus |
Tianjin Silvery and Zhengzhou Yutong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Zhengzhou Yutong
The main advantage of trading using opposite Tianjin Silvery and Zhengzhou Yutong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Zhengzhou Yutong 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 Zhengzhou Yutong will offset losses from the drop in Zhengzhou Yutong's long position.| Tianjin Silvery vs. Fujian Longzhou Transportation | Tianjin Silvery vs. Kunshan Guoli Electronic | Tianjin Silvery vs. Zhejiang Kingland Pipeline | Tianjin Silvery vs. Hubeiyichang Transportation Group |
| Zhengzhou Yutong vs. Eastroc Beverage Group | Zhengzhou Yutong vs. Industrial Bank Co | Zhengzhou Yutong vs. Ningbo Tech Bank Co | Zhengzhou Yutong vs. Jiangsu Phoenix Publishing |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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