Correlation Between Tieling Newcity and Xinjiang Communications
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By analyzing existing cross correlation between Tieling Newcity Investment and Xinjiang Communications Construction, you can compare the effects of market volatilities on Tieling Newcity and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Xinjiang Communications.
Diversification Opportunities for Tieling Newcity and Xinjiang Communications
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tieling and Xinjiang is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Tieling Newcity and Xinjiang Communications
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.17 times more return on investment than Xinjiang Communications. However, Tieling Newcity is 1.17 times more volatile than Xinjiang Communications Construction. It trades about 0.2 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about -0.04 per unit of risk. If you would invest 234.00 in Tieling Newcity Investment on October 17, 2024 and sell it today you would earn a total of 92.00 from holding Tieling Newcity Investment or generate 39.32% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Tieling Newcity Inve |
| Xinjiang Communications |
Tieling Newcity and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Xinjiang Communications
The main advantage of trading using opposite Tieling Newcity and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Tieling Newcity vs. Union Semiconductor Co | Tieling Newcity vs. Aba Chemicals Corp | Tieling Newcity vs. Lontium Semiconductor Corp | Tieling Newcity vs. Tsingtao Brewery 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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