Correlation Between Tianjin Silvery and Xingguang Agricultural
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Tianjin Silvery and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Xingguang Agricultural.
Diversification Opportunities for Tianjin Silvery and Xingguang Agricultural
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tianjin and Xingguang is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Xingguang Agricultural
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.3 times more return on investment than Xingguang Agricultural. However, Tianjin Silvery is 1.3 times more volatile than Xingguang Agricultural Mach. It trades about -0.02 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.3 per unit of risk. If you would invest 664.00 in Tianjin Silvery Dragon on October 29, 2024 and sell it today you would lose (23.00) from holding Tianjin Silvery Dragon or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Xingguang Agricultural |
Tianjin Silvery and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Xingguang Agricultural
The main advantage of trading using opposite Tianjin Silvery and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Tianjin Silvery vs. Shantui Construction Machinery | Tianjin Silvery vs. Masterwork Machinery | Tianjin Silvery vs. Wintao Communications Co | Tianjin Silvery vs. Agricultural Bank of |
| Xingguang Agricultural vs. Lutian Machinery Co | Xingguang Agricultural vs. Jilin OLED Material | Xingguang Agricultural vs. King Strong New Material | Xingguang Agricultural vs. Guangzhou Tinci Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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