Correlation Between Tianjin Capital and ABO-GROUP ENVIRONMENT
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT 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 ABO GROUP ENVIRONMENT, you can compare the effects of market volatilities on Tianjin Capital and ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and ABO-GROUP ENVIRONMENT.
Diversification Opportunities for Tianjin Capital and ABO-GROUP ENVIRONMENT
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianjin and ABO-GROUP is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and ABO GROUP ENVIRONMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABO GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABO GROUP ENVIRONMENT has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and ABO-GROUP ENVIRONMENT go up and down completely randomly.
Pair Corralation between Tianjin Capital and ABO-GROUP ENVIRONMENT
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.97 times more return on investment than ABO-GROUP ENVIRONMENT. However, Tianjin Capital is 1.97 times more volatile than ABO GROUP ENVIRONMENT. It trades about 0.06 of its potential returns per unit of risk. ABO GROUP ENVIRONMENT is currently generating about -0.14 per unit of risk. If you would invest 33.00 in Tianjin Capital Environmental on November 28, 2024 and sell it today you would earn a total of 5.00 from holding Tianjin Capital Environmental or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. ABO GROUP ENVIRONMENT
Performance |
| Timeline |
| Tianjin Capital Envi |
| ABO GROUP ENVIRONMENT |
Tianjin Capital and ABO-GROUP ENVIRONMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and ABO-GROUP ENVIRONMENT
The main advantage of trading using opposite Tianjin Capital and ABO-GROUP ENVIRONMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT will offset losses from the drop in ABO-GROUP ENVIRONMENT's long position.| Tianjin Capital vs. CanSino Biologics | Tianjin Capital vs. Lendlease Group | Tianjin Capital vs. ScanSource | Tianjin Capital vs. Sixt Leasing SE |
| ABO-GROUP ENVIRONMENT vs. PLAYMATES HLDGS NEW | ABO-GROUP ENVIRONMENT vs. Luckin Coffee | ABO-GROUP ENVIRONMENT vs. PLAYWAY SA ZY 10 | ABO-GROUP ENVIRONMENT vs. Chesapeake Utilities |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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