Correlation Between Tianjin Silvery and Anhui Jianghuai
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Tianjin Silvery and Anhui Jianghuai 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 Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Anhui Jianghuai.
Diversification Opportunities for Tianjin Silvery and Anhui Jianghuai
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tianjin and Anhui is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto 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 Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Anhui Jianghuai
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 0.81 times more return on investment than Anhui Jianghuai. However, Tianjin Silvery Dragon is 1.23 times less risky than Anhui Jianghuai. It trades about 0.12 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.09 per unit of risk. If you would invest 500.00 in Tianjin Silvery Dragon on October 14, 2024 and sell it today you would earn a total of 121.00 from holding Tianjin Silvery Dragon or generate 24.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Anhui Jianghuai Auto |
Tianjin Silvery and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Anhui Jianghuai
The main advantage of trading using opposite Tianjin Silvery and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Tianjin Silvery vs. Cultural Investment Holdings | Tianjin Silvery vs. Spring Airlines Co | Tianjin Silvery vs. Nanxing Furniture Machinery | Tianjin Silvery vs. Shanghai Shuixing Home |
| Anhui Jianghuai vs. Tianjin Silvery Dragon | Anhui Jianghuai vs. Jinhui Mining Co | Anhui Jianghuai vs. GreenTech Environmental Co | Anhui Jianghuai vs. Xinjiang Baodi Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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