Correlation Between Tianjin Ruixin and Zhengping RoadBridge
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By analyzing existing cross correlation between Tianjin Ruixin Technology and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Tianjin Ruixin and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and Zhengping RoadBridge.
Diversification Opportunities for Tianjin Ruixin and Zhengping RoadBridge
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and Zhengping is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and Zhengping RoadBridge
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to generate 1.06 times more return on investment than Zhengping RoadBridge. However, Tianjin Ruixin is 1.06 times more volatile than Zhengping RoadBridge Constr. It trades about 0.22 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about 0.08 per unit of risk. If you would invest 1,399 in Tianjin Ruixin Technology on September 24, 2024 and sell it today you would earn a total of 348.00 from holding Tianjin Ruixin Technology or generate 24.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Ruixin Technology vs. Zhengping RoadBridge Constr
Performance |
Timeline |
Tianjin Ruixin Technology |
Zhengping RoadBridge |
Tianjin Ruixin and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Ruixin and Zhengping RoadBridge
The main advantage of trading using opposite Tianjin Ruixin and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Shandong Gold Mining | Tianjin Ruixin vs. Rongsheng Petrochemical Co |
Zhengping RoadBridge vs. Tianjin Ruixin Technology | Zhengping RoadBridge vs. Guizhou Chanhen Chemical | Zhengping RoadBridge vs. Hengli Petrochemical Co | Zhengping RoadBridge vs. Hubei Forbon 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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