Correlation Between Tieling Newcity and Lonkey Industrial
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By analyzing existing cross correlation between Tieling Newcity Investment and Lonkey Industrial Co, you can compare the effects of market volatilities on Tieling Newcity and Lonkey Industrial 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 Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Lonkey Industrial.
Diversification Opportunities for Tieling Newcity and Lonkey Industrial
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tieling and Lonkey is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial 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 Lonkey Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonkey Industrial has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Tieling Newcity and Lonkey Industrial
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.22 times more return on investment than Lonkey Industrial. However, Tieling Newcity is 1.22 times more volatile than Lonkey Industrial Co. It trades about 0.15 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about -0.28 per unit of risk. If you would invest 298.00 in Tieling Newcity Investment on October 11, 2024 and sell it today you would earn a total of 32.00 from holding Tieling Newcity Investment or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Lonkey Industrial Co
Performance |
| Timeline |
| Tieling Newcity Inve |
| Lonkey Industrial |
Tieling Newcity and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Lonkey Industrial
The main advantage of trading using opposite Tieling Newcity and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Lonkey Industrial 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 Lonkey Industrial will offset losses from the drop in Lonkey Industrial's long position.| Tieling Newcity vs. Cultural Investment Holdings | Tieling Newcity vs. Hangzhou Pinming Software | Tieling Newcity vs. Fujian Boss Software | Tieling Newcity vs. Shanghai Material Trading |
| Lonkey Industrial vs. Hubei Geoway Investment | Lonkey Industrial vs. Zoje Resources Investment | Lonkey Industrial vs. Shuhua Sports Co | Lonkey Industrial vs. Tieling Newcity Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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