Correlation Between Tieling Newcity and Invengo Information
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By analyzing existing cross correlation between Tieling Newcity Investment and Invengo Information Technology, you can compare the effects of market volatilities on Tieling Newcity and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Invengo Information.
Diversification Opportunities for Tieling Newcity and Invengo Information
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tieling and Invengo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Invengo Information go up and down completely randomly.
Pair Corralation between Tieling Newcity and Invengo Information
Assuming the 90 days trading horizon Tieling Newcity is expected to generate 1.08 times less return on investment than Invengo Information. But when comparing it to its historical volatility, Tieling Newcity Investment is 1.13 times less risky than Invengo Information. It trades about 0.04 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Invengo Information Technology on October 17, 2024 and sell it today you would earn a total of 83.00 from holding Invengo Information Technology or generate 18.08% 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. Invengo Information Technology
Performance |
| Timeline |
| Tieling Newcity Inve |
| Invengo Information |
Tieling Newcity and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Invengo Information
The main advantage of trading using opposite Tieling Newcity and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Tieling Newcity vs. Guangzhou Haozhi Industrial | Tieling Newcity vs. Universal Scientific Industrial | Tieling Newcity vs. Soochow Suzhou Industrial | Tieling Newcity vs. Chengtun Mining Group |
| Invengo Information vs. Ziel Home Furnishing | Invengo Information vs. Tieling Newcity Investment | Invengo Information vs. China Asset Management | Invengo Information vs. Beijing Kingsoft Office |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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