Correlation Between Jiangsu Changfa and Tieling Newcity
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By analyzing existing cross correlation between Jiangsu Changfa Refrigeration and Tieling Newcity Investment, you can compare the effects of market volatilities on Jiangsu Changfa 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 Jiangsu Changfa with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Changfa and Tieling Newcity.
Diversification Opportunities for Jiangsu Changfa and Tieling Newcity
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Tieling is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Changfa Refrigeration 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 Jiangsu Changfa 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 Jiangsu Changfa Refrigeration 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 Jiangsu Changfa i.e., Jiangsu Changfa and Tieling Newcity go up and down completely randomly.
Pair Corralation between Jiangsu Changfa and Tieling Newcity
Assuming the 90 days trading horizon Jiangsu Changfa Refrigeration is expected to generate 1.04 times more return on investment than Tieling Newcity. However, Jiangsu Changfa is 1.04 times more volatile than Tieling Newcity Investment. It trades about 0.01 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 474.00 in Jiangsu Changfa Refrigeration on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Jiangsu Changfa Refrigeration or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jiangsu Changfa Refrigeration vs. Tieling Newcity Investment
Performance |
| Timeline |
| Jiangsu Changfa Refr |
| Tieling Newcity Inve |
Jiangsu Changfa and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Changfa and Tieling Newcity
The main advantage of trading using opposite Jiangsu Changfa and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Changfa 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.| Jiangsu Changfa vs. Guangzhou Haige Communications | Jiangsu Changfa vs. Shaanxi Meineng Clean | Jiangsu Changfa vs. State Grid InformationCommunication | Jiangsu Changfa vs. Tianjin Hi Tech Development |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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