Correlation Between Tianjin Capital and ENEOS Holdings

Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and ENEOS Holdings 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 ENEOS Holdings 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 ENEOS Holdings, you can compare the effects of market volatilities on Tianjin Capital and ENEOS Holdings 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 ENEOS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and ENEOS Holdings.

Diversification Opportunities for Tianjin Capital and ENEOS Holdings

0.14

Correlation Coefficient

Tianjin Capital  ENEOS Holdings

Average diversification

The 3 months correlation between Tianjin and ENEOS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and ENEOS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEOS Holdings 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 ENEOS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEOS Holdings has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and ENEOS Holdings go up and down completely randomly.

Pair Corralation between Tianjin Capital and ENEOS Holdings

Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.12 times more return on investment than ENEOS Holdings. However, Tianjin Capital is 1.12 times more volatile than ENEOS Holdings. It trades about 0.25 of its potential returns per unit of risk. ENEOS Holdings is currently generating about 0.07 per unit of risk. If you would invest  33.00  in Tianjin Capital Environmental on April 24, 2025 and sell it today you would earn a total of  10.00  from holding Tianjin Capital Environmental or generate 30.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tianjin Capital Environmental  vs.  ENEOS Holdings

Tianjin Capital Envi

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tianjin Capital Environmental are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Tianjin Capital reported solid returns over the last few months and may actually be approaching a breakup point.

ENEOS Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ENEOS Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ENEOS Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tianjin Capital and ENEOS Holdings

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

The idea behind Tianjin Capital Environmental and ENEOS Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.