Correlation Between Tieling Newcity and Fuzhou Rockchip
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By analyzing existing cross correlation between Tieling Newcity Investment and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Tieling Newcity and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Fuzhou Rockchip.
Diversification Opportunities for Tieling Newcity and Fuzhou Rockchip
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tieling and Fuzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Tieling Newcity and Fuzhou Rockchip
Assuming the 90 days trading horizon Tieling Newcity is expected to generate 13.05 times less return on investment than Fuzhou Rockchip. But when comparing it to its historical volatility, Tieling Newcity Investment is 2.25 times less risky than Fuzhou Rockchip. It trades about 0.06 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 11,595 in Fuzhou Rockchip Electronics on October 30, 2024 and sell it today you would earn a total of 4,855 from holding Fuzhou Rockchip Electronics or generate 41.87% 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. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Tieling Newcity Inve |
| Fuzhou Rockchip Elec |
Tieling Newcity and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Fuzhou Rockchip
The main advantage of trading using opposite Tieling Newcity and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Tieling Newcity vs. Industrial and Commercial | Tieling Newcity vs. China Construction Bank | Tieling Newcity vs. Bank of China | Tieling Newcity vs. Agricultural Bank of |
| Fuzhou Rockchip vs. Guocheng Mining Co | Fuzhou Rockchip vs. Guangdong Jingyi Metal | Fuzhou Rockchip vs. Uroica Mining Safety | Fuzhou Rockchip vs. Hainan Mining 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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