Correlation Between Aba Chemicals and Tieling Newcity
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By analyzing existing cross correlation between Aba Chemicals Corp and Tieling Newcity Investment, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Tieling Newcity.
Diversification Opportunities for Aba Chemicals and Tieling Newcity
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aba and Tieling is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp 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 Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Tieling Newcity go up and down completely randomly.
Pair Corralation between Aba Chemicals and Tieling Newcity
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Tieling Newcity. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.28 times less risky than Tieling Newcity. The stock trades about -0.33 of its potential returns per unit of risk. The Tieling Newcity Investment is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Tieling Newcity Investment on October 17, 2024 and sell it today you would lose (26.00) from holding Tieling Newcity Investment or give up 7.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Tieling Newcity Investment
Performance |
| Timeline |
| Aba Chemicals Corp |
| Tieling Newcity Inve |
Aba Chemicals and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Tieling Newcity
The main advantage of trading using opposite Aba Chemicals and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Gifore Agricultural Machinery | Aba Chemicals vs. Lutian Machinery Co | Aba Chemicals vs. Hua Xia Bank | Aba Chemicals vs. Xizi Clean Energy |
| Tieling Newcity vs. Union Semiconductor Co | Tieling Newcity vs. Aba Chemicals Corp | Tieling Newcity vs. Lontium Semiconductor Corp | Tieling Newcity vs. Tsingtao Brewery Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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