Correlation Between Tianjin Capital and U Haul

Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and U Haul 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 Capital and U Haul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tianjin Capital Environmental and U Haul Holding, you can compare the effects of market volatilities on Tianjin Capital and U Haul 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 Capital with a short position of U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and U Haul.

Diversification Opportunities for Tianjin Capital and U Haul

-0.47

Correlation Coefficient

Tianjin Capital  U Haul

Very good diversification

The 3 months correlation between Tianjin and UHAL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding and Tianjin Capital 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 Capital Environmental are associated (or correlated) with U Haul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and U Haul go up and down completely randomly.

Pair Corralation between Tianjin Capital and U Haul

Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 0.46 times more return on investment than U Haul. However, Tianjin Capital Environmental is 2.18 times less risky than U Haul. It trades about 0.13 of its potential returns per unit of risk. U Haul Holding is currently generating about -0.11 per unit of risk. If you would invest  36.00  in Tianjin Capital Environmental on May 5, 2025 and sell it today you would earn a total of  2.00  from holding Tianjin Capital Environmental or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Tianjin Capital Environmental  vs.  U Haul Holding

Tianjin Capital Envi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tianjin Capital Environmental are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Tianjin Capital is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

U Haul Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Tianjin Capital and U Haul

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

The idea behind Tianjin Capital Environmental and U Haul Holding 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.