Correlation Between Tieling Newcity and Shenzhen Glory
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By analyzing existing cross correlation between Tieling Newcity Investment and Shenzhen Glory Medical, you can compare the effects of market volatilities on Tieling Newcity and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Shenzhen Glory.
Diversification Opportunities for Tieling Newcity and Shenzhen Glory
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tieling and Shenzhen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Tieling Newcity and Shenzhen Glory
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.06 times more return on investment than Shenzhen Glory. However, Tieling Newcity is 1.06 times more volatile than Shenzhen Glory Medical. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about -0.03 per unit of risk. If you would invest 315.00 in Tieling Newcity Investment on October 14, 2024 and sell it today you would earn a total of 9.00 from holding Tieling Newcity Investment or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Tieling Newcity Inve |
| Shenzhen Glory Medical |
Tieling Newcity and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Shenzhen Glory
The main advantage of trading using opposite Tieling Newcity and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Tieling Newcity vs. Lutian Machinery Co | Tieling Newcity vs. Shenzhen Zhongzhuang Construction | Tieling Newcity vs. Panda Dairy Corp | Tieling Newcity vs. Xingguang Agricultural Mach |
| Shenzhen Glory vs. Soochow Suzhou Industrial | Shenzhen Glory vs. Tibet Huayu Mining | Shenzhen Glory vs. Tieling Newcity Investment | Shenzhen Glory vs. Universal Scientific Industrial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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