Correlation Between Tianjin Capital and United States
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and United States 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 United States 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 United States Steel, you can compare the effects of market volatilities on Tianjin Capital and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and United States.
Diversification Opportunities for Tianjin Capital and United States
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and United is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and United States go up and down completely randomly.
Pair Corralation between Tianjin Capital and United States
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.56 times more return on investment than United States. However, Tianjin Capital is 1.56 times more volatile than United States Steel. It trades about 0.06 of its potential returns per unit of risk. United States Steel is currently generating about 0.07 per unit of risk. If you would invest 19.00 in Tianjin Capital Environmental on August 31, 2024 and sell it today you would earn a total of 19.00 from holding Tianjin Capital Environmental or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. United States Steel
Performance |
| Timeline |
| Tianjin Capital Envi |
| United States Steel |
Tianjin Capital and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and United States
The main advantage of trading using opposite Tianjin Capital and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Tianjin Capital vs. Altair Engineering | Tianjin Capital vs. Air New Zealand | Tianjin Capital vs. SCIENCE IN SPORT | Tianjin Capital vs. WIZZ AIR HLDGUNSPADR4 |
| United States vs. Canadian Utilities Limited | United States vs. Digilife Technologies Limited | United States vs. Eidesvik Offshore ASA | United States vs. BW OFFSHORE LTD |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |