Correlation Between Tieling Newcity and Guangdong Qunxing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tieling Newcity Investment and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Tieling Newcity and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Guangdong Qunxing.
Diversification Opportunities for Tieling Newcity and Guangdong Qunxing
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tieling and Guangdong is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Tieling Newcity and Guangdong Qunxing
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Guangdong Qunxing. But the stock apears to be less risky and, when comparing its historical volatility, Tieling Newcity Investment is 1.52 times less risky than Guangdong Qunxing. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Qunxing Toys is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 724.00 in Guangdong Qunxing Toys on October 18, 2024 and sell it today you would lose (19.00) from holding Guangdong Qunxing Toys or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Tieling Newcity Inve |
| Guangdong Qunxing Toys |
Tieling Newcity and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Guangdong Qunxing
The main advantage of trading using opposite Tieling Newcity and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Tieling Newcity vs. Union Semiconductor Co | Tieling Newcity vs. Aba Chemicals Corp | Tieling Newcity vs. Lontium Semiconductor Corp | Tieling Newcity vs. Tsingtao Brewery Co |
| Guangdong Qunxing vs. Tieling Newcity Investment | Guangdong Qunxing vs. Ningbo Fangzheng Automobile | Guangdong Qunxing vs. China Mobile Limited | Guangdong Qunxing vs. Shanghai Material Trading |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |