Correlation Between Tieling Newcity and Guangzhou Boji
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By analyzing existing cross correlation between Tieling Newcity Investment and Guangzhou Boji Medical, you can compare the effects of market volatilities on Tieling Newcity and Guangzhou Boji 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 Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Guangzhou Boji.
Diversification Opportunities for Tieling Newcity and Guangzhou Boji
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tieling and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical 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 Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Tieling Newcity and Guangzhou Boji
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Guangzhou Boji. But the stock apears to be less risky and, when comparing its historical volatility, Tieling Newcity Investment is 1.16 times less risky than Guangzhou Boji. The stock trades about -0.01 of its potential returns per unit of risk. The Guangzhou Boji Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 918.00 in Guangzhou Boji Medical on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Guangzhou Boji Medical or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Tieling Newcity Inve |
| Guangzhou Boji Medical |
Tieling Newcity and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Guangzhou Boji
The main advantage of trading using opposite Tieling Newcity and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Guangzhou Boji 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 Boji will offset losses from the drop in Guangzhou Boji's long position.| Tieling Newcity vs. China World Trade | Tieling Newcity vs. FSPG Hi Tech Co | Tieling Newcity vs. Jiangxi Hengda Hi Tech | Tieling Newcity vs. Xinjiang Communications Construction |
| Guangzhou Boji vs. Chengdu Kanghua Biological | Guangzhou Boji vs. Beijing Wantai Biological | Guangzhou Boji vs. Suzhou Novoprotein Scientific | Guangzhou Boji vs. Aluminum Corp of |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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