Correlation Between Tieling Newcity and Guangzhou Jointas
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By analyzing existing cross correlation between Tieling Newcity Investment and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Tieling Newcity and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Guangzhou Jointas.
Diversification Opportunities for Tieling Newcity and Guangzhou Jointas
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tieling and Guangzhou is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Tieling Newcity and Guangzhou Jointas
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.1 times more return on investment than Guangzhou Jointas. However, Tieling Newcity is 1.1 times more volatile than Guangzhou Jointas Chemical. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.04 per unit of risk. If you would invest 315.00 in Tieling Newcity Investment on October 16, 2024 and sell it today you would earn a total of 1.00 from holding Tieling Newcity Investment or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Tieling Newcity Inve |
| Guangzhou Jointas |
Tieling Newcity and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Guangzhou Jointas
The main advantage of trading using opposite Tieling Newcity and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Tieling Newcity vs. JiShi Media Co | Tieling Newcity vs. Kontour Medical Technology | Tieling Newcity vs. Anhui Xinhua Media | Tieling Newcity vs. Xiangyu Medical Co |
| Guangzhou Jointas vs. State Grid InformationCommunication | Guangzhou Jointas vs. Guangxi Wuzhou Communications | Guangzhou Jointas vs. Tieling Newcity Investment | Guangzhou Jointas vs. Dr Peng Telecom |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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