Correlation Between Old Republic and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both Old Republic 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 Old Republic and Tianjin Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and Tianjin Capital Environmental, you can compare the effects of market volatilities on Old Republic 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 Old Republic with a short position of Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and Tianjin Capital.
Diversification Opportunities for Old Republic and Tianjin Capital
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Tianjin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International 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 Old Republic 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 Old Republic International 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 Old Republic i.e., Old Republic and Tianjin Capital go up and down completely randomly.
Pair Corralation between Old Republic and Tianjin Capital
If you would invest 38.00 in Tianjin Capital Environmental on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Tianjin Capital Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Republic International vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Old Republic Interna |
| Tianjin Capital Envi |
Old Republic and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and Tianjin Capital
The main advantage of trading using opposite Old Republic and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic 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.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
| Tianjin Capital vs. Old Republic International | Tianjin Capital vs. Paltalk | Tianjin Capital vs. Sabre Insurance Group | Tianjin Capital vs. Employers 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 CEOs Directory module to screen CEOs from public companies around the world.
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