Correlation Between Tianjin Capital and NURAN WIRELESS
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and NURAN WIRELESS 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 Tianjin Capital and NURAN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Capital Environmental and NURAN WIRELESS INC, you can compare the effects of market volatilities on Tianjin Capital and NURAN WIRELESS 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 Capital with a short position of NURAN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and NURAN WIRELESS.
Diversification Opportunities for Tianjin Capital and NURAN WIRELESS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tianjin and NURAN is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and NURAN WIRELESS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NURAN WIRELESS INC and Tianjin Capital 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 Capital Environmental are associated (or correlated) with NURAN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NURAN WIRELESS INC has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and NURAN WIRELESS go up and down completely randomly.
Pair Corralation between Tianjin Capital and NURAN WIRELESS
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 0.59 times more return on investment than NURAN WIRELESS. However, Tianjin Capital Environmental is 1.7 times less risky than NURAN WIRELESS. It trades about 0.06 of its potential returns per unit of risk. NURAN WIRELESS INC is currently generating about -0.01 per unit of risk. If you would invest 12.00 in Tianjin Capital Environmental on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Tianjin Capital Environmental or generate 216.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. NURAN WIRELESS INC
Performance |
| Timeline |
| Tianjin Capital Envi |
| NURAN WIRELESS INC |
Tianjin Capital and NURAN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and NURAN WIRELESS
The main advantage of trading using opposite Tianjin Capital and NURAN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, NURAN WIRELESS 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 NURAN WIRELESS will offset losses from the drop in NURAN WIRELESS's long position.| Tianjin Capital vs. PLAY2CHILL SA ZY | Tianjin Capital vs. COLUMBIA SPORTSWEAR | Tianjin Capital vs. GungHo Online Entertainment | Tianjin Capital vs. Lamar Advertising |
| NURAN WIRELESS vs. Tianjin Capital Environmental | NURAN WIRELESS vs. Citic Telecom International | NURAN WIRELESS vs. Boiron SA | NURAN WIRELESS vs. Perma Fix Environmental Services |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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