Correlation Between Tianjin Capital and LUMI GRUPPEN
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and LUMI GRUPPEN 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 LUMI GRUPPEN 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 LUMI GRUPPEN AS, you can compare the effects of market volatilities on Tianjin Capital and LUMI GRUPPEN 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 LUMI GRUPPEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and LUMI GRUPPEN.
Diversification Opportunities for Tianjin Capital and LUMI GRUPPEN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tianjin and LUMI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and LUMI GRUPPEN AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LUMI GRUPPEN AS 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 LUMI GRUPPEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LUMI GRUPPEN AS has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and LUMI GRUPPEN go up and down completely randomly.
Pair Corralation between Tianjin Capital and LUMI GRUPPEN
If you would invest (100.00) in LUMI GRUPPEN AS on October 31, 2024 and sell it today you would earn a total of 100.00 from holding LUMI GRUPPEN AS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. LUMI GRUPPEN AS
Performance |
| Timeline |
| Tianjin Capital Envi |
| LUMI GRUPPEN AS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tianjin Capital and LUMI GRUPPEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and LUMI GRUPPEN
The main advantage of trading using opposite Tianjin Capital and LUMI GRUPPEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, LUMI GRUPPEN 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 LUMI GRUPPEN will offset losses from the drop in LUMI GRUPPEN's long position.| Tianjin Capital vs. PARKEN Sport Entertainment | Tianjin Capital vs. Yuexiu Transport Infrastructure | Tianjin Capital vs. ANTA SPORTS PRODUCT | Tianjin Capital vs. WisdomTree Investments |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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