Correlation Between Tieling Newcity and Hubei Geoway
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By analyzing existing cross correlation between Tieling Newcity Investment and Hubei Geoway Investment, you can compare the effects of market volatilities on Tieling Newcity and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Hubei Geoway.
Diversification Opportunities for Tieling Newcity and Hubei Geoway
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tieling and Hubei is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Hubei Geoway go up and down completely randomly.
Pair Corralation between Tieling Newcity and Hubei Geoway
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.79 times more return on investment than Hubei Geoway. However, Tieling Newcity Investment is 1.26 times less risky than Hubei Geoway. It trades about 0.22 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.07 per unit of risk. If you would invest 223.00 in Tieling Newcity Investment on October 14, 2024 and sell it today you would earn a total of 101.00 from holding Tieling Newcity Investment or generate 45.29% 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. Hubei Geoway Investment
Performance |
| Timeline |
| Tieling Newcity Inve |
| Hubei Geoway Investment |
Tieling Newcity and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Hubei Geoway
The main advantage of trading using opposite Tieling Newcity and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Tieling Newcity vs. Lutian Machinery Co | Tieling Newcity vs. Shenzhen Zhongzhuang Construction | Tieling Newcity vs. Panda Dairy Corp | Tieling Newcity vs. Xingguang Agricultural Mach |
| Hubei Geoway vs. Muyuan Foodstuff Co | Hubei Geoway vs. Beijing Sanyuan Foods | Hubei Geoway vs. Youyou Foods Co | Hubei Geoway vs. Bohai Leasing Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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