Correlation Between Tieling Newcity and Zhejiang Construction
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By analyzing existing cross correlation between Tieling Newcity Investment and Zhejiang Construction Investment, you can compare the effects of market volatilities on Tieling Newcity and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Zhejiang Construction.
Diversification Opportunities for Tieling Newcity and Zhejiang Construction
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tieling and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Tieling Newcity and Zhejiang Construction
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.77 times more return on investment than Zhejiang Construction. However, Tieling Newcity Investment is 1.3 times less risky than Zhejiang Construction. It trades about 0.12 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about 0.05 per unit of risk. If you would invest 180.00 in Tieling Newcity Investment on September 3, 2024 and sell it today you would earn a total of 88.00 from holding Tieling Newcity Investment or generate 48.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.3% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Tieling Newcity Inve |
| Zhejiang Construction |
Tieling Newcity and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Zhejiang Construction
The main advantage of trading using opposite Tieling Newcity and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction'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 |
| Zhejiang Construction vs. Chengdu Spaceon Electronics | Zhejiang Construction vs. Anhui Gujing Distillery | Zhejiang Construction vs. Western Metal Materials | Zhejiang Construction vs. China Asset Management |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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