Correlation Between Tianjin Capital and Grocery Outlet
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and Grocery Outlet 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 Grocery Outlet 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 Grocery Outlet Holding, you can compare the effects of market volatilities on Tianjin Capital and Grocery Outlet 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 Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and Grocery Outlet.
Diversification Opportunities for Tianjin Capital and Grocery Outlet
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tianjin and Grocery is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and Grocery Outlet Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grocery Outlet Holding 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 Grocery Outlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grocery Outlet Holding has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and Grocery Outlet go up and down completely randomly.
Pair Corralation between Tianjin Capital and Grocery Outlet
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 2.48 times more return on investment than Grocery Outlet. However, Tianjin Capital is 2.48 times more volatile than Grocery Outlet Holding. It trades about 0.07 of its potential returns per unit of risk. Grocery Outlet Holding is currently generating about -0.01 per unit of risk. If you would invest 8.09 in Tianjin Capital Environmental on August 29, 2024 and sell it today you would earn a total of 29.91 from holding Tianjin Capital Environmental or generate 369.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. Grocery Outlet Holding
Performance |
| Timeline |
| Tianjin Capital Envi |
| Grocery Outlet Holding |
Tianjin Capital and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and Grocery Outlet
The main advantage of trading using opposite Tianjin Capital and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, Grocery Outlet 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 Grocery Outlet will offset losses from the drop in Grocery Outlet's long position.| Tianjin Capital vs. JJill Inc | Tianjin Capital vs. Duluth Holdings | Tianjin Capital vs. Under Armour C | Tianjin Capital vs. Nike Inc |
| Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Sprouts Farmers Market | Grocery Outlet vs. Albertsons Companies | Grocery Outlet vs. Dingdong ADR |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |