Correlation Between Tieling Newcity and Beijing Yuanlong
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By analyzing existing cross correlation between Tieling Newcity Investment and Beijing Yuanlong Yato, you can compare the effects of market volatilities on Tieling Newcity and Beijing Yuanlong 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 Beijing Yuanlong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Beijing Yuanlong.
Diversification Opportunities for Tieling Newcity and Beijing Yuanlong
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tieling and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Beijing Yuanlong Yato in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yuanlong Yato 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 Beijing Yuanlong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yuanlong Yato has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Beijing Yuanlong go up and down completely randomly.
Pair Corralation between Tieling Newcity and Beijing Yuanlong
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.82 times more return on investment than Beijing Yuanlong. However, Tieling Newcity Investment is 1.22 times less risky than Beijing Yuanlong. It trades about 0.02 of its potential returns per unit of risk. Beijing Yuanlong Yato is currently generating about 0.01 per unit of risk. If you would invest 304.00 in Tieling Newcity Investment on September 14, 2024 and sell it today you would earn a total of 11.00 from holding Tieling Newcity Investment or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Beijing Yuanlong Yato
Performance |
| Timeline |
| Tieling Newcity Inve |
| Beijing Yuanlong Yato |
Tieling Newcity and Beijing Yuanlong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Beijing Yuanlong
The main advantage of trading using opposite Tieling Newcity and Beijing Yuanlong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Beijing Yuanlong 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 Beijing Yuanlong will offset losses from the drop in Beijing Yuanlong's long position.| Tieling Newcity vs. PetroChina Co Ltd | Tieling Newcity vs. China Mobile Limited | Tieling Newcity vs. CNOOC Limited | Tieling Newcity vs. Ping An Insurance |
| Beijing Yuanlong vs. Quectel Wireless Solutions | Beijing Yuanlong vs. Yili Chuanning Biotechnology | Beijing Yuanlong vs. Tibet Huayu Mining | Beijing Yuanlong vs. Liaoning Chengda Biotechnology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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