Correlation Between Tieling Newcity and Xinjiang Beixin
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By analyzing existing cross correlation between Tieling Newcity Investment and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Tieling Newcity and Xinjiang Beixin 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 Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Xinjiang Beixin.
Diversification Opportunities for Tieling Newcity and Xinjiang Beixin
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tieling and Xinjiang is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road 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 Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Tieling Newcity and Xinjiang Beixin
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.84 times more return on investment than Xinjiang Beixin. However, Tieling Newcity Investment is 1.18 times less risky than Xinjiang Beixin. It trades about 0.17 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about -0.09 per unit of risk. If you would invest 269.00 in Tieling Newcity Investment on October 16, 2024 and sell it today you would earn a total of 57.00 from holding Tieling Newcity Investment or generate 21.19% 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. Xinjiang Beixin RoadBridge
Performance |
Timeline |
Tieling Newcity Inve |
Xinjiang Beixin Road |
Tieling Newcity and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tieling Newcity and Xinjiang Beixin
The main advantage of trading using opposite Tieling Newcity and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin'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 |
Xinjiang Beixin vs. Heren Health Co | Xinjiang Beixin vs. Hunan Investment Group | Xinjiang Beixin vs. Zoje Resources Investment | Xinjiang Beixin 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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