Correlation Between Tieling Newcity and Yindu Kitchen
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By analyzing existing cross correlation between Tieling Newcity Investment and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Tieling Newcity and Yindu Kitchen 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 Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Yindu Kitchen.
Diversification Opportunities for Tieling Newcity and Yindu Kitchen
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tieling and Yindu is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Yindu Kitchen Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yindu Kitchen Equipment 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 Yindu Kitchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yindu Kitchen Equipment has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Tieling Newcity and Yindu Kitchen
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.43 times more return on investment than Yindu Kitchen. However, Tieling Newcity is 1.43 times more volatile than Yindu Kitchen Equipment. It trades about 0.18 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.15 per unit of risk. If you would invest 264.00 in Tieling Newcity Investment on October 22, 2024 and sell it today you would earn a total of 59.00 from holding Tieling Newcity Investment or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| Tieling Newcity Inve |
| Yindu Kitchen Equipment |
Tieling Newcity and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Yindu Kitchen
The main advantage of trading using opposite Tieling Newcity and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Yindu Kitchen 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 Yindu Kitchen will offset losses from the drop in Yindu Kitchen's long position.| Tieling Newcity vs. Caihong Display Devices | Tieling Newcity vs. City Development Environment | Tieling Newcity vs. Tongyu Communication | Tieling Newcity vs. Gansu Jiu Steel |
| Yindu Kitchen vs. Chengdu Xingrong Investment | Yindu Kitchen vs. Jiangsu Yueda Investment | Yindu Kitchen vs. Tieling Newcity Investment | Yindu Kitchen vs. Tibet Huayu Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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