Correlation Between Allied Machinery and Tjk Machinery
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By analyzing existing cross correlation between Allied Machinery Co and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Allied Machinery and Tjk Machinery 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 Allied Machinery with a short position of Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Tjk Machinery.
Diversification Opportunities for Allied Machinery and Tjk Machinery
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allied and Tjk is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin and Allied Machinery 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 Allied Machinery Co are associated (or correlated) with Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Allied Machinery i.e., Allied Machinery and Tjk Machinery go up and down completely randomly.
Pair Corralation between Allied Machinery and Tjk Machinery
Assuming the 90 days trading horizon Allied Machinery is expected to generate 1.13 times less return on investment than Tjk Machinery. But when comparing it to its historical volatility, Allied Machinery Co is 1.54 times less risky than Tjk Machinery. It trades about 0.17 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Tjk Machinery Tianjin on August 28, 2024 and sell it today you would earn a total of 239.00 from holding Tjk Machinery Tianjin or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Tjk Machinery Tianjin
Performance |
| Timeline |
| Allied Machinery |
| Tjk Machinery Tianjin |
Allied Machinery and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Tjk Machinery
The main advantage of trading using opposite Allied Machinery and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.| Allied Machinery vs. Biwin Storage Technology | Allied Machinery vs. PetroChina Co Ltd | Allied Machinery vs. Industrial and Commercial | Allied Machinery vs. China Construction Bank |
| Tjk Machinery vs. Biwin Storage Technology | Tjk Machinery vs. PetroChina Co Ltd | Tjk Machinery vs. Industrial and Commercial | Tjk Machinery vs. China Construction Bank |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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