Correlation Between Tianjin Pengling and New China
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By analyzing existing cross correlation between Tianjin Pengling Rubber and New China Life, you can compare the effects of market volatilities on Tianjin Pengling and New China 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 Tianjin Pengling with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and New China.
Diversification Opportunities for Tianjin Pengling and New China
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and New is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and Tianjin Pengling 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 Tianjin Pengling Rubber are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Tianjin Pengling i.e., Tianjin Pengling and New China go up and down completely randomly.
Pair Corralation between Tianjin Pengling and New China
Assuming the 90 days trading horizon Tianjin Pengling Rubber is expected to generate 0.91 times more return on investment than New China. However, Tianjin Pengling Rubber is 1.1 times less risky than New China. It trades about 0.02 of its potential returns per unit of risk. New China Life is currently generating about 0.01 per unit of risk. If you would invest 532.00 in Tianjin Pengling Rubber on September 14, 2024 and sell it today you would earn a total of 3.00 from holding Tianjin Pengling Rubber or generate 0.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Pengling Rubber vs. New China Life
Performance |
Timeline |
Tianjin Pengling Rubber |
New China Life |
Tianjin Pengling and New China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Pengling and New China
The main advantage of trading using opposite Tianjin Pengling and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.Tianjin Pengling vs. New China Life | Tianjin Pengling vs. Ming Yang Smart | Tianjin Pengling vs. 159681 | Tianjin Pengling vs. 159005 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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