Correlation Between Tianjin Capital and Monument Mining
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and Monument Mining 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 Monument Mining 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 Monument Mining Limited, you can compare the effects of market volatilities on Tianjin Capital and Monument Mining 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 Monument Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Monument Mining.
Diversification Opportunities for Tianjin Capital and Monument Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Monument is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining 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 Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Monument Mining go up and down completely randomly.
Pair Corralation between Tianjin Capital and Monument Mining
Assuming the 90 days horizon Tianjin Capital Environmental is expected to under-perform the Monument Mining. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Capital Environmental is 4.26 times less risky than Monument Mining. The stock trades about -0.22 of its potential returns per unit of risk. The Monument Mining Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Monument Mining Limited on October 29, 2024 and sell it today you would earn a total of 2.00 from holding Monument Mining Limited or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Monument Mining Limited
Performance |
| Timeline |
| Tianjin Capital Envi |
| Monument Mining |
Tianjin Capital and Monument Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Monument Mining
The main advantage of trading using opposite Tianjin Capital and Monument Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Monument Mining 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 Monument Mining will offset losses from the drop in Monument Mining's long position.| Tianjin Capital vs. NH Foods | Tianjin Capital vs. Maple Leaf Foods | Tianjin Capital vs. Nomad Foods | Tianjin Capital vs. MAGNUM MINING EXP |
| Monument Mining vs. QBE Insurance Group | Monument Mining vs. Japan Post Insurance | Monument Mining vs. PENN Entertainment | Monument Mining vs. SBI Insurance Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |