Correlation Between Tianjin Capital and Covivio SA
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and Covivio SA 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 Covivio SA 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 Covivio SA, you can compare the effects of market volatilities on Tianjin Capital and Covivio SA 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 Covivio SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Covivio SA.
Diversification Opportunities for Tianjin Capital and Covivio SA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tianjin and Covivio is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Covivio SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Covivio SA 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 Covivio SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Covivio SA has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Covivio SA go up and down completely randomly.
Pair Corralation between Tianjin Capital and Covivio SA
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.28 times more return on investment than Covivio SA. However, Tianjin Capital is 1.28 times more volatile than Covivio SA. It trades about -0.05 of its potential returns per unit of risk. Covivio SA is currently generating about -0.14 per unit of risk. If you would invest 39.00 in Tianjin Capital Environmental on September 12, 2024 and sell it today you would lose (1.00) from holding Tianjin Capital Environmental or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Covivio SA
Performance |
| Timeline |
| Tianjin Capital Envi |
| Covivio SA |
Tianjin Capital and Covivio SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Covivio SA
The main advantage of trading using opposite Tianjin Capital and Covivio SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Covivio SA 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 Covivio SA will offset losses from the drop in Covivio SA's long position.| Tianjin Capital vs. Datadog | Tianjin Capital vs. ALIOR BANK | Tianjin Capital vs. REVO INSURANCE SPA | Tianjin Capital vs. Datang International Power |
| Covivio SA vs. Superior Plus Corp | Covivio SA vs. SIVERS SEMICONDUCTORS AB | Covivio SA vs. CHINA HUARONG ENERHD 50 | Covivio SA vs. NORDIC HALIBUT AS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |