Correlation Between Tieling Newcity and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Tieling Newcity Investment and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Tieling Newcity and Beijing HuaYuanYiTong 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 HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Beijing HuaYuanYiTong.
Diversification Opportunities for Tieling Newcity and Beijing HuaYuanYiTong
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tieling and Beijing is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Tieling Newcity and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.83 times more return on investment than Beijing HuaYuanYiTong. However, Tieling Newcity is 1.83 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about 0.16 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about -0.54 per unit of risk. If you would invest 298.00 in Tieling Newcity Investment on October 11, 2024 and sell it today you would earn a total of 33.00 from holding Tieling Newcity Investment or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Tieling Newcity Inve |
| Beijing HuaYuanYiTong |
Tieling Newcity and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Beijing HuaYuanYiTong
The main advantage of trading using opposite Tieling Newcity and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Beijing HuaYuanYiTong 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 HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Tieling Newcity vs. Cultural Investment Holdings | Tieling Newcity vs. Hangzhou Pinming Software | Tieling Newcity vs. Fujian Boss Software | Tieling Newcity vs. Shanghai Material Trading |
| Beijing HuaYuanYiTong vs. Zijin Mining Group | Beijing HuaYuanYiTong vs. Ningbo Fangzheng Automobile | Beijing HuaYuanYiTong vs. Western Mining Co | Beijing HuaYuanYiTong vs. Jinhui Mining Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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