Correlation Between TianJin 712 and Beijing Wantai
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By analyzing existing cross correlation between TianJin 712 Communication and Beijing Wantai Biological, you can compare the effects of market volatilities on TianJin 712 and Beijing Wantai 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 712 with a short position of Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Beijing Wantai.
Diversification Opportunities for TianJin 712 and Beijing Wantai
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TianJin and Beijing is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological and TianJin 712 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 712 Communication are associated (or correlated) with Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of TianJin 712 i.e., TianJin 712 and Beijing Wantai go up and down completely randomly.
Pair Corralation between TianJin 712 and Beijing Wantai
Assuming the 90 days trading horizon TianJin 712 Communication is expected to generate 3.16 times more return on investment than Beijing Wantai. However, TianJin 712 is 3.16 times more volatile than Beijing Wantai Biological. It trades about -0.02 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.42 per unit of risk. If you would invest 1,790 in TianJin 712 Communication on October 5, 2024 and sell it today you would lose (81.00) from holding TianJin 712 Communication or give up 4.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
TianJin 712 Communication vs. Beijing Wantai Biological
Performance |
Timeline |
TianJin 712 Communication |
Beijing Wantai Biological |
TianJin 712 and Beijing Wantai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TianJin 712 and Beijing Wantai
The main advantage of trading using opposite TianJin 712 and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.TianJin 712 vs. Vanfund Urban Investment | TianJin 712 vs. Jointo Energy Investment | TianJin 712 vs. Thunder Software Technology | TianJin 712 vs. Fujian Boss Software |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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