Correlation Between Tongding Interconnection and Bank of XiAn
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By analyzing existing cross correlation between Tongding Interconnection Information and Bank of XiAn, you can compare the effects of market volatilities on Tongding Interconnection and Bank of XiAn 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 Tongding Interconnection with a short position of Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Bank of XiAn.
Diversification Opportunities for Tongding Interconnection and Bank of XiAn
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tongding and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn and Tongding Interconnection 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 Tongding Interconnection Information are associated (or correlated) with Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Tongding Interconnection i.e., Tongding Interconnection and Bank of XiAn go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Bank of XiAn
If you would invest (100.00) in Bank of XiAn on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Bank of XiAn or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Tongding Interconnection Infor vs. Bank of XiAn
Performance |
| Timeline |
| Tongding Interconnection |
| Bank of XiAn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Tongding Interconnection and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Bank of XiAn
The main advantage of trading using opposite Tongding Interconnection and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.The idea behind Tongding Interconnection Information and Bank of XiAn pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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