Correlation Between Tieling Newcity and Zhongyin Babi
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By analyzing existing cross correlation between Tieling Newcity Investment and Zhongyin Babi Food, you can compare the effects of market volatilities on Tieling Newcity and Zhongyin Babi 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 Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Zhongyin Babi.
Diversification Opportunities for Tieling Newcity and Zhongyin Babi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tieling and Zhongyin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food 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 Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Tieling Newcity and Zhongyin Babi
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.05 times more return on investment than Zhongyin Babi. However, Tieling Newcity is 1.05 times more volatile than Zhongyin Babi Food. It trades about 0.16 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about 0.06 per unit of risk. If you would invest 238.00 in Tieling Newcity Investment on October 24, 2024 and sell it today you would earn a total of 69.00 from holding Tieling Newcity Investment or generate 28.99% 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. Zhongyin Babi Food
Performance |
| Timeline |
| Tieling Newcity Inve |
| Zhongyin Babi Food |
Tieling Newcity and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Zhongyin Babi
The main advantage of trading using opposite Tieling Newcity and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Tieling Newcity vs. Guangzhou Automobile Group | Tieling Newcity vs. Fuda Alloy Materials | Tieling Newcity vs. Ningxia Younglight Chemicals | Tieling Newcity vs. Sinomach Automobile Co |
| Zhongyin Babi vs. Zhejiang Construction Investment | Zhongyin Babi vs. Duzhe Publishing Media | Zhongyin Babi vs. Hunan Investment Group | Zhongyin Babi vs. Tieling Newcity Investment |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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