Correlation Between 06417XAK7 and Tianjin Capital

Can any of the company-specific risk be diversified away by investing in both 06417XAK7 and Tianjin Capital 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 06417XAK7 and Tianjin Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BNS 5406829 11 APR 25 and Tianjin Capital Environmental, you can compare the effects of market volatilities on 06417XAK7 and Tianjin Capital 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 06417XAK7 with a short position of Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06417XAK7 and Tianjin Capital.

Diversification Opportunities for 06417XAK7 and Tianjin Capital

-0.31

Correlation Coefficient

06417XAK7  Tianjin Capital

Very good diversification

The 3 months correlation between 06417XAK7 and Tianjin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BNS 5406829 11 APR 25 and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi and 06417XAK7 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 BNS 5406829 11 APR 25 are associated (or correlated) with Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of 06417XAK7 i.e., 06417XAK7 and Tianjin Capital go up and down completely randomly.

Pair Corralation between 06417XAK7 and Tianjin Capital

Assuming the 90 days trading horizon BNS 5406829 11 APR 25 is expected to under-perform the Tianjin Capital. But the bond apears to be less risky and, when comparing its historical volatility, BNS 5406829 11 APR 25 is 5.21 times less risky than Tianjin Capital. The bond trades about -0.19 of its potential returns per unit of risk. The Tianjin Capital Environmental is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  34.00  in Tianjin Capital Environmental on September 15, 2024 and sell it today you would earn a total of  4.00  from holding Tianjin Capital Environmental or generate 11.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	48.44%
Values	Daily Returns

BNS 5406829 11 APR 25  vs.  Tianjin Capital Environmental

BNS 5406829 11

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BNS 5406829 11 APR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 06417XAK7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tianjin Capital Envi

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tianjin Capital Environmental are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward indicators, Tianjin Capital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with 06417XAK7 and Tianjin Capital

The main advantage of trading using opposite 06417XAK7 and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06417XAK7 position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.

The idea behind BNS 5406829 11 APR 25 and Tianjin Capital Environmental pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.