Correlation Between Tieling Newcity and Shenzhen Transsion
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By analyzing existing cross correlation between Tieling Newcity Investment and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Tieling Newcity and Shenzhen Transsion 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 Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Shenzhen Transsion.
Diversification Opportunities for Tieling Newcity and Shenzhen Transsion
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tieling and Shenzhen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion 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 Shenzhen Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Tieling Newcity and Shenzhen Transsion
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.17 times more return on investment than Shenzhen Transsion. However, Tieling Newcity is 1.17 times more volatile than Shenzhen Transsion Holdings. It trades about -0.22 of its potential returns per unit of risk. Shenzhen Transsion Holdings is currently generating about -0.4 per unit of risk. If you would invest 308.00 in Tieling Newcity Investment on December 1, 2024 and sell it today you would lose (28.00) from holding Tieling Newcity Investment or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| Tieling Newcity Inve |
| Shenzhen Transsion |
Tieling Newcity and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Shenzhen Transsion
The main advantage of trading using opposite Tieling Newcity and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Shenzhen Transsion 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 Shenzhen Transsion will offset losses from the drop in Shenzhen Transsion's long position.| Tieling Newcity vs. Glodon Software Co | Tieling Newcity vs. Nuode Investment Co | Tieling Newcity vs. Jiangsu Yueda Investment | Tieling Newcity vs. Beijing Mainstreets Investment |
| Shenzhen Transsion vs. Aba Chemicals Corp | Shenzhen Transsion vs. HaiXin Foods Co | Shenzhen Transsion vs. Do Fluoride Chemicals Co | Shenzhen Transsion vs. Cansino Biologics |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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