Correlation Between Tieling Newcity and Jiangxi Hengda
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By analyzing existing cross correlation between Tieling Newcity Investment and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Tieling Newcity and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Jiangxi Hengda.
Diversification Opportunities for Tieling Newcity and Jiangxi Hengda
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tieling and Jiangxi is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Tieling Newcity and Jiangxi Hengda
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.65 times more return on investment than Jiangxi Hengda. However, Tieling Newcity Investment is 1.55 times less risky than Jiangxi Hengda. It trades about -0.04 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.12 per unit of risk. If you would invest 331.00 in Tieling Newcity Investment on October 18, 2024 and sell it today you would lose (12.00) from holding Tieling Newcity Investment or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Tieling Newcity Inve |
| Jiangxi Hengda Hi |
Tieling Newcity and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Jiangxi Hengda
The main advantage of trading using opposite Tieling Newcity and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Tieling Newcity vs. Sihui Fuji Electronics | Tieling Newcity vs. Sichuan Fulin Transportation | Tieling Newcity vs. TongFu Microelectronics Co | Tieling Newcity vs. China Sports Industry |
| Jiangxi Hengda vs. Tieling Newcity Investment | Jiangxi Hengda vs. Chengdu Xingrong Investment | Jiangxi Hengda vs. Henan Shuanghui Investment | Jiangxi Hengda vs. Shenzhen Centralcon 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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