Correlation Between Tongding Interconnection and Tianjin Pengling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongding Interconnection Information and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Tongding Interconnection and Tianjin Pengling 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 Tongding Interconnection with a short position of Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Tianjin Pengling.
Diversification Opportunities for Tongding Interconnection and Tianjin Pengling
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongding and Tianjin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber and Tongding Interconnection 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 Tongding Interconnection Information are associated (or correlated) with Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Tongding Interconnection i.e., Tongding Interconnection and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Tianjin Pengling
Assuming the 90 days trading horizon Tongding Interconnection Information is expected to generate 0.76 times more return on investment than Tianjin Pengling. However, Tongding Interconnection Information is 1.32 times less risky than Tianjin Pengling. It trades about 0.24 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.15 per unit of risk. If you would invest 315.00 in Tongding Interconnection Information on September 6, 2024 and sell it today you would earn a total of 146.00 from holding Tongding Interconnection Information or generate 46.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tongding Interconnection Infor vs. Tianjin Pengling Rubber
Performance |
Timeline |
Tongding Interconnection |
Tianjin Pengling Rubber |
Tongding Interconnection and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongding Interconnection and Tianjin Pengling
The main advantage of trading using opposite Tongding Interconnection and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection position performs unexpectedly, Tianjin Pengling 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 Pengling will offset losses from the drop in Tianjin Pengling's long position.The idea behind Tongding Interconnection Information and Tianjin Pengling Rubber 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.
Tianjin Pengling vs. China Construction Bank | Tianjin Pengling vs. Xinke Material | Tianjin Pengling vs. Guangzhou Tinci Materials | Tianjin Pengling vs. Hua Xia Bank |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |