Correlation Between Tieling Newcity and Jinsanjiang Silicon
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By analyzing existing cross correlation between Tieling Newcity Investment and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Tieling Newcity and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Jinsanjiang Silicon.
Diversification Opportunities for Tieling Newcity and Jinsanjiang Silicon
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tieling and Jinsanjiang is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Tieling Newcity and Jinsanjiang Silicon
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.57 times more return on investment than Jinsanjiang Silicon. However, Tieling Newcity Investment is 1.75 times less risky than Jinsanjiang Silicon. It trades about -0.05 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.18 per unit of risk. If you would invest 317.00 in Tieling Newcity Investment on November 3, 2024 and sell it today you would lose (9.00) from holding Tieling Newcity Investment or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Tieling Newcity Inve |
| Jinsanjiang Silicon |
Tieling Newcity and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Jinsanjiang Silicon
The main advantage of trading using opposite Tieling Newcity and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Tieling Newcity vs. Sanbo Hospital Management | Tieling Newcity vs. Chenzhou Jingui Silver | Tieling Newcity vs. Huizhou Speed Wireless | Tieling Newcity vs. Jiangxi Naipu Mining |
| Jinsanjiang Silicon vs. Anhui Shiny Electronic | Jinsanjiang Silicon vs. Success Electronics | Jinsanjiang Silicon vs. Dawning Information Industry | Jinsanjiang Silicon vs. Zhongfu Information |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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