Correlation Between Tianjin Capital and Société Générale
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and Société Générale 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 Société Générale 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 Socit Gnrale Socit, you can compare the effects of market volatilities on Tianjin Capital and Société Générale 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 Société Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Société Générale.
Diversification Opportunities for Tianjin Capital and Société Générale
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Société is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Société Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Société Générale go up and down completely randomly.
Pair Corralation between Tianjin Capital and Société Générale
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.27 times more return on investment than Société Générale. However, Tianjin Capital is 1.27 times more volatile than Socit Gnrale Socit. It trades about 0.07 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about -0.12 per unit of risk. If you would invest 37.00 in Tianjin Capital Environmental on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Tianjin Capital Environmental or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Socit Gnrale Socit
Performance |
| Timeline |
| Tianjin Capital Envi |
| Socit Gnrale Socit |
Tianjin Capital and Société Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Société Générale
The main advantage of trading using opposite Tianjin Capital and Société Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Société Générale 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 Société Générale will offset losses from the drop in Société Générale's long position.| Tianjin Capital vs. Veolia Environnement SA | Tianjin Capital vs. Superior Plus Corp | Tianjin Capital vs. NMI Holdings | Tianjin Capital vs. Origin Agritech |
| Société Générale vs. Constellation Software | Société Générale vs. Nippon Steel | Société Générale vs. ALGOMA STEEL GROUP | Société Générale vs. FORMPIPE SOFTWARE AB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |