Correlation Between Tianjin Hi and China Securities
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By analyzing existing cross correlation between Tianjin Hi Tech Development and China Securities 800, you can compare the effects of market volatilities on Tianjin Hi and China Securities 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 Hi with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and China Securities.
Diversification Opportunities for Tianjin Hi and China Securities
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and China is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Tianjin Hi 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 Hi Tech Development are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Tianjin Hi i.e., Tianjin Hi and China Securities go up and down completely randomly.
Pair Corralation between Tianjin Hi and China Securities
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to under-perform the China Securities. In addition to that, Tianjin Hi is 2.48 times more volatile than China Securities 800. It trades about -0.02 of its total potential returns per unit of risk. China Securities 800 is currently generating about 0.04 per unit of volatility. If you would invest 360,217 in China Securities 800 on October 9, 2024 and sell it today you would earn a total of 43,525 from holding China Securities 800 or generate 12.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Hi Tech Development vs. China Securities 800
Performance |
Timeline |
Tianjin Hi and China Securities Volatility Contrast
Predicted Return Density |
Returns |
Tianjin Hi Tech Development
Pair trading matchups for Tianjin Hi
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Tianjin Hi and China Securities
The main advantage of trading using opposite Tianjin Hi and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.Tianjin Hi vs. Biwin Storage Technology | Tianjin Hi vs. PetroChina Co Ltd | Tianjin Hi vs. Industrial and Commercial | Tianjin Hi vs. China Construction Bank |
China Securities vs. Ligao Foods CoLtd | China Securities vs. Leyard Optoelectronic | China Securities vs. Integrated Electronic Systems | China Securities vs. Beijing Sanyuan Foods |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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