Correlation Between Tianjin Realty and Kontour Medical

Can any of the company-specific risk be diversified away by investing in both Tianjin Realty and Kontour Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tianjin Realty and Kontour Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tianjin Realty Development and Kontour Medical Technology, you can compare the effects of market volatilities on Tianjin Realty and Kontour Medical 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 Realty with a short position of Kontour Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and Kontour Medical.

Diversification Opportunities for Tianjin Realty and Kontour Medical

0.0

Correlation Coefficient

Tianjin Realty  Kontour Medical

Pay attention - limited upside

The 3 months correlation between Tianjin and Kontour is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and Kontour Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontour Medical Tech and Tianjin Realty 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 Realty Development are associated (or correlated) with Kontour Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontour Medical Tech has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and Kontour Medical go up and down completely randomly.

Pair Corralation between Tianjin Realty and Kontour Medical

If you would invest  2,889  in Kontour Medical Technology on October 24, 2024 and sell it today you would earn a total of  151.00  from holding Kontour Medical Technology or generate 5.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Tianjin Realty Development  vs.  Kontour Medical Technology

Tianjin Realty Devel

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Tianjin Realty Development has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tianjin Realty is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kontour Medical Tech

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kontour Medical Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Kontour Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tianjin Realty and Kontour Medical

The main advantage of trading using opposite Tianjin Realty and Kontour Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, Kontour Medical 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 Kontour Medical will offset losses from the drop in Kontour Medical's long position.

The idea behind Tianjin Realty Development and Kontour Medical Technology 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.