Correlation Between Tieling Newcity and Shengtak New
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By analyzing existing cross correlation between Tieling Newcity Investment and Shengtak New Material, you can compare the effects of market volatilities on Tieling Newcity and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Shengtak New.
Diversification Opportunities for Tieling Newcity and Shengtak New
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tieling and Shengtak is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Shengtak New go up and down completely randomly.
Pair Corralation between Tieling Newcity and Shengtak New
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Shengtak New. In addition to that, Tieling Newcity is 1.59 times more volatile than Shengtak New Material. It trades about -0.03 of its total potential returns per unit of risk. Shengtak New Material is currently generating about 0.07 per unit of volatility. If you would invest 3,157 in Shengtak New Material on October 18, 2024 and sell it today you would earn a total of 76.00 from holding Shengtak New Material or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Shengtak New Material
Performance |
| Timeline |
| Tieling Newcity Inve |
| Shengtak New Material |
Tieling Newcity and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Shengtak New
The main advantage of trading using opposite Tieling Newcity and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's 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 |
| Shengtak New vs. Wonders Information | Shengtak New vs. Shenzhen SDG Information | Shengtak New vs. Thinkon Semiconductor Jinzhou | Shengtak New vs. Sharetronic Data Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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