Correlation Between Tianjin Silvery and Zhejiang Huatong
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Tianjin Silvery and Zhejiang Huatong 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 Silvery with a short position of Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Zhejiang Huatong.
Diversification Opportunities for Tianjin Silvery and Zhejiang Huatong
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tianjin and Zhejiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat and Tianjin Silvery 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 Silvery Dragon are associated (or correlated) with Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Zhejiang Huatong
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 0.89 times more return on investment than Zhejiang Huatong. However, Tianjin Silvery Dragon is 1.13 times less risky than Zhejiang Huatong. It trades about 0.18 of its potential returns per unit of risk. Zhejiang Huatong Meat is currently generating about 0.11 per unit of risk. If you would invest 442.00 in Tianjin Silvery Dragon on September 25, 2024 and sell it today you would earn a total of 175.00 from holding Tianjin Silvery Dragon or generate 39.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Silvery Dragon vs. Zhejiang Huatong Meat
Performance |
Timeline |
Tianjin Silvery Dragon |
Zhejiang Huatong Meat |
Tianjin Silvery and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Silvery and Zhejiang Huatong
The main advantage of trading using opposite Tianjin Silvery and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong's long position.Tianjin Silvery vs. Fujian Longzhou Transportation | Tianjin Silvery vs. Zhongshan Broad Ocean Motor | Tianjin Silvery vs. Jinhui Liquor Co | Tianjin Silvery vs. Anhui Transport Consulting |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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