Correlation Between Tieling Newcity and Epoxy Base
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By analyzing existing cross correlation between Tieling Newcity Investment and Epoxy Base Electronic, you can compare the effects of market volatilities on Tieling Newcity and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Epoxy Base.
Diversification Opportunities for Tieling Newcity and Epoxy Base
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tieling and Epoxy is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Epoxy Base go up and down completely randomly.
Pair Corralation between Tieling Newcity and Epoxy Base
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the Epoxy Base. In addition to that, Tieling Newcity is 1.16 times more volatile than Epoxy Base Electronic. It trades about -0.26 of its total potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.56 per unit of volatility. If you would invest 540.00 in Epoxy Base Electronic on November 27, 2024 and sell it today you would earn a total of 101.00 from holding Epoxy Base Electronic or generate 18.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Epoxy Base Electronic
Performance |
| Timeline |
| Tieling Newcity Inve |
| Epoxy Base Electronic |
Tieling Newcity and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Epoxy Base
The main advantage of trading using opposite Tieling Newcity and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Tieling Newcity vs. Shandong Huifa Foodstuff | Tieling Newcity vs. Great Sun Foods Co | Tieling Newcity vs. Beijing Bewinner Communications | Tieling Newcity vs. Eastroc Beverage Group |
| Epoxy Base vs. Offshore Oil Engineering | Epoxy Base vs. Jiahe Foods Industry | Epoxy Base vs. Heilongjiang Transport Development | Epoxy Base vs. Jiajia Food Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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