Correlation Between Tianjin Silvery and Jinyu Bio
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Tianjin Silvery and Jinyu Bio 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 Silvery with a short position of Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Jinyu Bio.
Diversification Opportunities for Tianjin Silvery and Jinyu Bio
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Jinyu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Jinyu Bio Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinyu Bio Technology and Tianjin Silvery 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 Silvery Dragon are associated (or correlated) with Jinyu Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinyu Bio Technology has no effect on the direction of Tianjin Silvery i.e., Tianjin Silvery and Jinyu Bio go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Jinyu Bio
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.29 times more return on investment than Jinyu Bio. However, Tianjin Silvery is 1.29 times more volatile than Jinyu Bio Technology Co. It trades about 0.03 of its potential returns per unit of risk. Jinyu Bio Technology Co is currently generating about -0.06 per unit of risk. If you would invest 590.00 in Tianjin Silvery Dragon on October 9, 2024 and sell it today you would earn a total of 52.00 from holding Tianjin Silvery Dragon or generate 8.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Silvery Dragon vs. Jinyu Bio Technology Co
Performance |
Timeline |
Tianjin Silvery Dragon |
Jinyu Bio Technology |
Tianjin Silvery and Jinyu Bio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Silvery and Jinyu Bio
The main advantage of trading using opposite Tianjin Silvery and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery position performs unexpectedly, Jinyu Bio 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 Jinyu Bio will offset losses from the drop in Jinyu Bio's long position.Tianjin Silvery vs. Ningbo Kangqiang Electronics | Tianjin Silvery vs. Dongfeng Automobile Co | Tianjin Silvery vs. Eastern Air Logistics | Tianjin Silvery vs. Guangxi Wuzhou Communications |
Jinyu Bio vs. China Everbright Bank | Jinyu Bio vs. Sichuan Yahua Industrial | Jinyu Bio vs. GRG Banking Equipment | Jinyu Bio vs. Hua Xia Bank |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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