Correlation Between Tianjin Ruixin and Shenzhen RoadRover
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Shenzhen RoadRover Technology, you can compare the effects of market volatilities on Tianjin Ruixin and Shenzhen RoadRover 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 Ruixin with a short position of Shenzhen RoadRover. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Shenzhen RoadRover.
Diversification Opportunities for Tianjin Ruixin and Shenzhen RoadRover
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Shenzhen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Shenzhen RoadRover Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen RoadRover and Tianjin Ruixin 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 Ruixin Technology are associated (or correlated) with Shenzhen RoadRover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen RoadRover has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Shenzhen RoadRover go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Shenzhen RoadRover
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to generate 1.27 times more return on investment than Shenzhen RoadRover. However, Tianjin Ruixin is 1.27 times more volatile than Shenzhen RoadRover Technology. It trades about 0.08 of its potential returns per unit of risk. Shenzhen RoadRover Technology is currently generating about -0.01 per unit of risk. If you would invest 1,269 in Tianjin Ruixin Technology on September 19, 2024 and sell it today you would earn a total of 464.00 from holding Tianjin Ruixin Technology or generate 36.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Ruixin Technology vs. Shenzhen RoadRover Technology
Performance |
Timeline |
Tianjin Ruixin Technology |
Shenzhen RoadRover |
Tianjin Ruixin and Shenzhen RoadRover Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Ruixin and Shenzhen RoadRover
The main advantage of trading using opposite Tianjin Ruixin and Shenzhen RoadRover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Shenzhen RoadRover 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 Shenzhen RoadRover will offset losses from the drop in Shenzhen RoadRover's long position.Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Shandong Gold Mining |
Shenzhen RoadRover vs. BeiGene | Shenzhen RoadRover vs. Kweichow Moutai Co | Shenzhen RoadRover vs. Beijing Roborock Technology | Shenzhen RoadRover vs. G bits Network Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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