Correlation Between Tianjin Pengling and Guangzhou Tinci
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Pengling Rubber and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Tianjin Pengling and Guangzhou Tinci 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 Pengling with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and Guangzhou Tinci.
Diversification Opportunities for Tianjin Pengling and Guangzhou Tinci
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and Guangzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials and Tianjin Pengling 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 Pengling Rubber are associated (or correlated) with Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Tianjin Pengling i.e., Tianjin Pengling and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Tianjin Pengling and Guangzhou Tinci
Assuming the 90 days trading horizon Tianjin Pengling Rubber is expected to generate 1.18 times more return on investment than Guangzhou Tinci. However, Tianjin Pengling is 1.18 times more volatile than Guangzhou Tinci Materials. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.04 per unit of risk. If you would invest 361.00 in Tianjin Pengling Rubber on September 26, 2024 and sell it today you would earn a total of 121.00 from holding Tianjin Pengling Rubber or generate 33.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Pengling Rubber vs. Guangzhou Tinci Materials
Performance |
Timeline |
Tianjin Pengling Rubber |
Guangzhou Tinci Materials |
Tianjin Pengling and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Pengling and Guangzhou Tinci
The main advantage of trading using opposite Tianjin Pengling and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.Tianjin Pengling vs. Industrial and Commercial | Tianjin Pengling vs. Agricultural Bank of | Tianjin Pengling vs. China Construction Bank | Tianjin Pengling vs. Bank of China |
Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |