Correlation Between Tianjin Capital and Nordex SE
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By analyzing existing cross correlation between Tianjin Capital Environmental and Nordex SE, you can compare the effects of market volatilities on Tianjin Capital and Nordex SE 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 Nordex SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Nordex SE.
Diversification Opportunities for Tianjin Capital and Nordex SE
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tianjin and Nordex is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Nordex SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordex SE 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 Nordex SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordex SE has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Nordex SE go up and down completely randomly.
Pair Corralation between Tianjin Capital and Nordex SE
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 0.79 times more return on investment than Nordex SE. However, Tianjin Capital Environmental is 1.27 times less risky than Nordex SE. It trades about -0.05 of its potential returns per unit of risk. Nordex SE is currently generating about -0.15 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Nordex SE
Performance |
| Timeline |
| Tianjin Capital Envi |
| Nordex SE |
Tianjin Capital and Nordex SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Nordex SE
The main advantage of trading using opposite Tianjin Capital and Nordex SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Nordex SE 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 Nordex SE will offset losses from the drop in Nordex SE's long position.| Tianjin Capital vs. Datadog | Tianjin Capital vs. ALIOR BANK | Tianjin Capital vs. REVO INSURANCE SPA | Tianjin Capital vs. Datang International Power |
| Nordex SE vs. Ribbon Communications | Nordex SE vs. Iridium Communications | Nordex SE vs. Verizon Communications | Nordex SE vs. Tianjin Capital Environmental |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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