Correlation Between Tieling Newcity and China Shenhua
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By analyzing existing cross correlation between Tieling Newcity Investment and China Shenhua Energy, you can compare the effects of market volatilities on Tieling Newcity and China Shenhua 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 China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and China Shenhua.
Diversification Opportunities for Tieling Newcity and China Shenhua
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tieling and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy 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 China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and China Shenhua go up and down completely randomly.
Pair Corralation between Tieling Newcity and China Shenhua
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 2.2 times more return on investment than China Shenhua. However, Tieling Newcity is 2.2 times more volatile than China Shenhua Energy. It trades about 0.14 of its potential returns per unit of risk. China Shenhua Energy is currently generating about -0.26 per unit of risk. If you would invest 301.00 in Tieling Newcity Investment on October 12, 2024 and sell it today you would earn a total of 29.00 from holding Tieling Newcity Investment or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. China Shenhua Energy
Performance |
| Timeline |
| Tieling Newcity Inve |
| China Shenhua Energy |
Tieling Newcity and China Shenhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and China Shenhua
The main advantage of trading using opposite Tieling Newcity and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, China Shenhua 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 China Shenhua will offset losses from the drop in China Shenhua's long position.| Tieling Newcity vs. Fujian Nanwang Environment | Tieling Newcity vs. Elite Color Environmental | Tieling Newcity vs. Dazhong Transportation Group | Tieling Newcity vs. XinJiang GuoTong Pipeline |
| China Shenhua vs. Jiugui Liquor Co | China Shenhua vs. Ningxia Younglight Chemicals | China Shenhua vs. Fujian Newland Computer | China Shenhua vs. FSPG Hi Tech 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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