Correlation Between Corsair Gaming and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Tianjin Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Corsair Gaming and Tianjin Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Tianjin Capital Environmental, you can compare the effects of market volatilities on Corsair Gaming and Tianjin Capital 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 Corsair Gaming with a short position of Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Tianjin Capital.
Diversification Opportunities for Corsair Gaming and Tianjin Capital
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corsair and Tianjin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Tianjin Capital go up and down completely randomly.
Pair Corralation between Corsair Gaming and Tianjin Capital
Assuming the 90 days horizon Corsair Gaming is expected to generate 3.01 times more return on investment than Tianjin Capital. However, Corsair Gaming is 3.01 times more volatile than Tianjin Capital Environmental. It trades about 0.13 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.07 per unit of risk. If you would invest 605.00 in Corsair Gaming on September 1, 2024 and sell it today you would earn a total of 84.00 from holding Corsair Gaming or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Corsair Gaming |
| Tianjin Capital Envi |
Corsair Gaming and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Tianjin Capital
The main advantage of trading using opposite Corsair Gaming and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Tianjin Capital 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 Capital will offset losses from the drop in Tianjin Capital's long position.| Corsair Gaming vs. SEIKO EPSON PADR | Corsair Gaming vs. Superior Plus Corp | Corsair Gaming vs. NMI Holdings | Corsair Gaming vs. Origin Agritech |
| Tianjin Capital vs. Veolia Environnement SA | Tianjin Capital vs. GFL ENVIRONM | Tianjin Capital vs. Superior Plus Corp | Tianjin Capital vs. NMI Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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