Correlation Between Tieling Newcity and Shanghai Metersbonwe
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By analyzing existing cross correlation between Tieling Newcity Investment and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Tieling Newcity and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Shanghai Metersbonwe.
Diversification Opportunities for Tieling Newcity and Shanghai Metersbonwe
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tieling and Shanghai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Tieling Newcity and Shanghai Metersbonwe
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Shanghai Metersbonwe. But the stock apears to be less risky and, when comparing its historical volatility, Tieling Newcity Investment is 1.13 times less risky than Shanghai Metersbonwe. The stock trades about 0.0 of its potential returns per unit of risk. The Shanghai Metersbonwe FashionAccessories is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 224.00 in Shanghai Metersbonwe FashionAccessories on September 3, 2024 and sell it today you would lose (22.00) from holding Shanghai Metersbonwe FashionAccessories or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Tieling Newcity Inve |
| Shanghai Metersbonwe |
Tieling Newcity and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Shanghai Metersbonwe
The main advantage of trading using opposite Tieling Newcity and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Tieling Newcity vs. China World Trade | Tieling Newcity vs. FSPG Hi Tech Co | Tieling Newcity vs. Jiangxi Hengda Hi Tech | Tieling Newcity vs. Xinjiang Communications Construction |
| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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