Correlation Between Tieling Newcity and AUPU Home
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By analyzing existing cross correlation between Tieling Newcity Investment and AUPU Home Style, you can compare the effects of market volatilities on Tieling Newcity and AUPU Home 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 AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and AUPU Home.
Diversification Opportunities for Tieling Newcity and AUPU Home
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tieling and AUPU is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style 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 AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and AUPU Home go up and down completely randomly.
Pair Corralation between Tieling Newcity and AUPU Home
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to under-perform the AUPU Home. But the stock apears to be less risky and, when comparing its historical volatility, Tieling Newcity Investment is 1.1 times less risky than AUPU Home. The stock trades about -0.09 of its potential returns per unit of risk. The AUPU Home Style is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,071 in AUPU Home Style on November 6, 2024 and sell it today you would lose (11.00) from holding AUPU Home Style or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. AUPU Home Style
Performance |
| Timeline |
| Tieling Newcity Inve |
| AUPU Home Style |
Tieling Newcity and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and AUPU Home
The main advantage of trading using opposite Tieling Newcity and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home's long position.| Tieling Newcity vs. Semiconductor Manufacturing Intl | Tieling Newcity vs. Jahen Household Products | Tieling Newcity vs. Guangzhou Seagull Kitchen | Tieling Newcity vs. Suzhou Oriental Semiconductor |
| AUPU Home vs. Central Plains Environment | AUPU Home vs. Shaanxi Meineng Clean | AUPU Home vs. Fujian Nanwang Environment | AUPU Home vs. Dazhong Transportation 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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