Correlation Between Tieling Newcity and Shanghai Shibei
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By analyzing existing cross correlation between Tieling Newcity Investment and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on Tieling Newcity and Shanghai Shibei 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 Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Shanghai Shibei.
Diversification Opportunities for Tieling Newcity and Shanghai Shibei
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tieling and Shanghai is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Shanghai Shibei go up and down completely randomly.
Pair Corralation between Tieling Newcity and Shanghai Shibei
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Shanghai Shibei. But the stock apears to be less risky and, when comparing its historical volatility, Tieling Newcity Investment is 1.0 times less risky than Shanghai Shibei. The stock trades about 0.0 of its potential returns per unit of risk. The Shanghai Shibei Hi Tech is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Shanghai Shibei Hi Tech on October 16, 2024 and sell it today you would lose (54.00) from holding Shanghai Shibei Hi Tech or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| Tieling Newcity Inve |
| Shanghai Shibei Hi |
Tieling Newcity and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Shanghai Shibei
The main advantage of trading using opposite Tieling Newcity and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei's long position.| Tieling Newcity vs. Guangzhou Haozhi Industrial | Tieling Newcity vs. Universal Scientific Industrial | Tieling Newcity vs. Soochow Suzhou Industrial | Tieling Newcity vs. Chengtun Mining Group |
| Shanghai Shibei vs. Changchun UP Optotech | Shanghai Shibei vs. Zhongrun Resources Investment | Shanghai Shibei vs. HUAQIN TECHNOLOGY LTD | Shanghai Shibei vs. Tieling Newcity Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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