Correlation Between Tieling Newcity and Shaanxi Energy
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By analyzing existing cross correlation between Tieling Newcity Investment and Shaanxi Energy Investment, you can compare the effects of market volatilities on Tieling Newcity and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Shaanxi Energy.
Diversification Opportunities for Tieling Newcity and Shaanxi Energy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tieling and Shaanxi is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Tieling Newcity and Shaanxi Energy
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 2.06 times more return on investment than Shaanxi Energy. However, Tieling Newcity is 2.06 times more volatile than Shaanxi Energy Investment. It trades about 0.39 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.08 per unit of risk. If you would invest 262.00 in Tieling Newcity Investment on September 14, 2024 and sell it today you would earn a total of 53.00 from holding Tieling Newcity Investment or generate 20.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Tieling Newcity Inve |
| Shaanxi Energy Investment |
Tieling Newcity and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Shaanxi Energy
The main advantage of trading using opposite Tieling Newcity and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Tieling Newcity vs. PetroChina Co Ltd | Tieling Newcity vs. China Mobile Limited | Tieling Newcity vs. CNOOC Limited | Tieling Newcity vs. Ping An Insurance |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. HOB Biotech Group | Shaanxi Energy vs. Ming Yang Smart | Shaanxi Energy vs. 159681 |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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