Correlation Between Tianjin Silvery and Xinya Electronic
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Xinya Electronic Co, you can compare the effects of market volatilities on Tianjin Silvery and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Xinya Electronic.
Diversification Opportunities for Tianjin Silvery and Xinya Electronic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Xinya is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Xinya Electronic go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Xinya Electronic
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.43 times more return on investment than Xinya Electronic. However, Tianjin Silvery is 1.43 times more volatile than Xinya Electronic Co. It trades about 0.27 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.24 per unit of risk. If you would invest 550.00 in Tianjin Silvery Dragon on September 24, 2024 and sell it today you would earn a total of 106.00 from holding Tianjin Silvery Dragon or generate 19.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Tianjin Silvery Dragon vs. Xinya Electronic Co
Performance |
Timeline |
Tianjin Silvery Dragon |
Xinya Electronic |
Tianjin Silvery and Xinya Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Silvery and Xinya Electronic
The main advantage of trading using opposite Tianjin Silvery and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.Tianjin Silvery vs. Jiangxi Selon Industrial | Tianjin Silvery vs. Hainan Mining Co | Tianjin Silvery vs. Guangdong Jingyi Metal | Tianjin Silvery vs. Hengli Industrial Development |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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