Correlation Between Tieling Newcity and Sinomach General
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By analyzing existing cross correlation between Tieling Newcity Investment and Sinomach General Machinery, you can compare the effects of market volatilities on Tieling Newcity and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Sinomach General.
Diversification Opportunities for Tieling Newcity and Sinomach General
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tieling and Sinomach is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Sinomach General go up and down completely randomly.
Pair Corralation between Tieling Newcity and Sinomach General
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.4 times more return on investment than Sinomach General. However, Tieling Newcity is 1.4 times more volatile than Sinomach General Machinery. It trades about 0.13 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.1 per unit of risk. If you would invest 268.00 in Tieling Newcity Investment on October 30, 2024 and sell it today you would earn a total of 40.00 from holding Tieling Newcity Investment or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Sinomach General Machinery
Performance |
| Timeline |
| Tieling Newcity Inve |
| Sinomach General Mac |
Tieling Newcity and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Sinomach General
The main advantage of trading using opposite Tieling Newcity and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Tieling Newcity vs. Industrial and Commercial | Tieling Newcity vs. China Construction Bank | Tieling Newcity vs. Bank of China | Tieling Newcity vs. Agricultural Bank of |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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