Correlation Between Tieling Newcity and Suzhou Industrial
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By analyzing existing cross correlation between Tieling Newcity Investment and Suzhou Industrial Park, you can compare the effects of market volatilities on Tieling Newcity and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Suzhou Industrial.
Diversification Opportunities for Tieling Newcity and Suzhou Industrial
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tieling and Suzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Tieling Newcity and Suzhou Industrial
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.48 times more return on investment than Suzhou Industrial. However, Tieling Newcity Investment is 2.09 times less risky than Suzhou Industrial. It trades about -0.03 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about -0.17 per unit of risk. If you would invest 305.00 in Tieling Newcity Investment on October 28, 2024 and sell it today you would lose (7.00) from holding Tieling Newcity Investment or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Suzhou Industrial Park
Performance |
| Timeline |
| Tieling Newcity Inve |
| Suzhou Industrial Park |
Tieling Newcity and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Suzhou Industrial
The main advantage of trading using opposite Tieling Newcity and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.| Tieling Newcity vs. Henan Shuanghui Investment | Tieling Newcity vs. Tianjin Silvery Dragon | Tieling Newcity vs. Tibet Huayu Mining | Tieling Newcity vs. Pengxin International Mining |
| Suzhou Industrial vs. Runjian Communication Co | Suzhou Industrial vs. Healthcare Co | Suzhou Industrial vs. Tianjin Hi Tech Development | Suzhou Industrial vs. Meinian Onehealth Healthcare |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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