Correlation Between FSPG Hi and Tieling Newcity
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By analyzing existing cross correlation between FSPG Hi Tech Co and Tieling Newcity Investment, you can compare the effects of market volatilities on FSPG Hi and Tieling Newcity 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 FSPG Hi with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Tieling Newcity.
Diversification Opportunities for FSPG Hi and Tieling Newcity
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FSPG and Tieling is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve and FSPG Hi 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 FSPG Hi Tech Co are associated (or correlated) with Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of FSPG Hi i.e., FSPG Hi and Tieling Newcity go up and down completely randomly.
Pair Corralation between FSPG Hi and Tieling Newcity
Assuming the 90 days trading horizon FSPG Hi Tech Co is expected to generate 0.9 times more return on investment than Tieling Newcity. However, FSPG Hi Tech Co is 1.11 times less risky than Tieling Newcity. It trades about 0.05 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.0 per unit of risk. If you would invest 464.00 in FSPG Hi Tech Co on September 3, 2024 and sell it today you would earn a total of 236.00 from holding FSPG Hi Tech Co or generate 50.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Tieling Newcity Investment
Performance |
| Timeline |
| FSPG Hi Tech |
| Tieling Newcity Inve |
FSPG Hi and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Tieling Newcity
The main advantage of trading using opposite FSPG Hi and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Wanhua Chemical Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Rongsheng Petrochemical Co |
| Tieling Newcity vs. China World Trade | Tieling Newcity vs. FSPG Hi Tech Co | Tieling Newcity vs. Jiangxi Hengda Hi Tech | Tieling Newcity vs. Xinjiang Communications Construction |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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