Correlation Between Tieling Newcity and Shandong
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By analyzing existing cross correlation between Tieling Newcity Investment and Shandong Hi Speed RoadBridge, you can compare the effects of market volatilities on Tieling Newcity and Shandong 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 Tieling Newcity with a short position of Shandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Shandong.
Diversification Opportunities for Tieling Newcity and Shandong
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tieling and Shandong is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Shandong Hi Speed RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hi Speed and Tieling Newcity 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 Tieling Newcity Investment are associated (or correlated) with Shandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hi Speed has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Shandong go up and down completely randomly.
Pair Corralation between Tieling Newcity and Shandong
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Shandong. In addition to that, Tieling Newcity is 1.81 times more volatile than Shandong Hi Speed RoadBridge. It trades about -0.29 of its total potential returns per unit of risk. Shandong Hi Speed RoadBridge is currently generating about 0.01 per unit of volatility. If you would invest 574.00 in Shandong Hi Speed RoadBridge on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Shandong Hi Speed RoadBridge or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Shandong Hi Speed RoadBridge
Performance |
| Timeline |
| Tieling Newcity Inve |
| Shandong Hi Speed |
Tieling Newcity and Shandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Shandong
The main advantage of trading using opposite Tieling Newcity and Shandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Shandong 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 Shandong will offset losses from the drop in Shandong's long position.| Tieling Newcity vs. Long Yuan Construction | Tieling Newcity vs. AVIC Fund Management | Tieling Newcity vs. CICC Fund Management | Tieling Newcity vs. Cicc Fund Management |
| Shandong vs. Soochow Suzhou Industrial | Shandong vs. Western Metal Materials | Shandong vs. CICC Fund Management | Shandong vs. Universal Scientific Industrial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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