Correlation Between Smartgiant Technology and Tianjin Pengling
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By analyzing existing cross correlation between Smartgiant Technology Co and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Smartgiant Technology and Tianjin Pengling 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 Smartgiant Technology with a short position of Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smartgiant Technology and Tianjin Pengling.
Diversification Opportunities for Smartgiant Technology and Tianjin Pengling
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Smartgiant and Tianjin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Smartgiant Technology Co and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber and Smartgiant Technology 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 Smartgiant Technology Co are associated (or correlated) with Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Smartgiant Technology i.e., Smartgiant Technology and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Smartgiant Technology and Tianjin Pengling
Assuming the 90 days trading horizon Smartgiant Technology Co is expected to generate 1.26 times more return on investment than Tianjin Pengling. However, Smartgiant Technology is 1.26 times more volatile than Tianjin Pengling Rubber. It trades about -0.11 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about -0.36 per unit of risk. If you would invest 4,300 in Smartgiant Technology Co on October 14, 2024 and sell it today you would lose (358.00) from holding Smartgiant Technology Co or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smartgiant Technology Co vs. Tianjin Pengling Rubber
Performance |
| Timeline |
| Smartgiant Technology |
| Tianjin Pengling Rubber |
Smartgiant Technology and Tianjin Pengling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smartgiant Technology and Tianjin Pengling
The main advantage of trading using opposite Smartgiant Technology and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smartgiant Technology position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.The idea behind Smartgiant Technology Co and Tianjin Pengling Rubber pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Tianjin Pengling vs. Smartgiant Technology Co | Tianjin Pengling vs. Tianshui Huatian Technology | Tianjin Pengling vs. Iat Automobile Technology | Tianjin Pengling vs. Sinofibers Technology 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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