Correlation Between Tianjin Realty and Yantai North
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By analyzing existing cross correlation between Tianjin Realty Development and Yantai North Andre, you can compare the effects of market volatilities on Tianjin Realty and Yantai North 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 Realty with a short position of Yantai North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Yantai North.
Diversification Opportunities for Tianjin Realty and Yantai North
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Yantai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Yantai North Andre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai North Andre and Tianjin Realty 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 Realty Development are associated (or correlated) with Yantai North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai North Andre has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Yantai North go up and down completely randomly.
Pair Corralation between Tianjin Realty and Yantai North
Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.49 times more return on investment than Yantai North. However, Tianjin Realty is 1.49 times more volatile than Yantai North Andre. It trades about 0.22 of its potential returns per unit of risk. Yantai North Andre is currently generating about 0.12 per unit of risk. If you would invest 146.00 in Tianjin Realty Development on September 24, 2024 and sell it today you would earn a total of 126.00 from holding Tianjin Realty Development or generate 86.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Tianjin Realty Development vs. Yantai North Andre
Performance |
Timeline |
Tianjin Realty Devel |
Yantai North Andre |
Tianjin Realty and Yantai North Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Realty and Yantai North
The main advantage of trading using opposite Tianjin Realty and Yantai North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Yantai North 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 Yantai North will offset losses from the drop in Yantai North's long position.Tianjin Realty vs. PetroChina Co Ltd | Tianjin Realty vs. China Mobile Limited | Tianjin Realty vs. CNOOC Limited | Tianjin Realty vs. Ping An Insurance |
Yantai North vs. Nanjing Putian Telecommunications | Yantai North vs. Tianjin Realty Development | Yantai North vs. Kangyue Technology Co | Yantai North vs. Shenzhen Hifuture Electric |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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