Correlation Between Zhejiang Tongxing and Tieling Newcity
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By analyzing existing cross correlation between Zhejiang Tongxing Technology and Tieling Newcity Investment, you can compare the effects of market volatilities on Zhejiang Tongxing 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 Zhejiang Tongxing with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Tongxing and Tieling Newcity.
Diversification Opportunities for Zhejiang Tongxing and Tieling Newcity
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Tieling is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Tongxing Technology 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 Zhejiang Tongxing 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 Zhejiang Tongxing Technology 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 Zhejiang Tongxing i.e., Zhejiang Tongxing and Tieling Newcity go up and down completely randomly.
Pair Corralation between Zhejiang Tongxing and Tieling Newcity
Assuming the 90 days trading horizon Zhejiang Tongxing Technology is expected to generate 1.92 times more return on investment than Tieling Newcity. However, Zhejiang Tongxing is 1.92 times more volatile than Tieling Newcity Investment. It trades about 0.11 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about -0.05 per unit of risk. If you would invest 3,319 in Zhejiang Tongxing Technology on November 3, 2024 and sell it today you would earn a total of 289.00 from holding Zhejiang Tongxing Technology or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Tongxing Technology vs. Tieling Newcity Investment
Performance |
| Timeline |
| Zhejiang Tongxing |
| Tieling Newcity Inve |
Zhejiang Tongxing and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Tongxing and Tieling Newcity
The main advantage of trading using opposite Zhejiang Tongxing and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Tongxing 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.| Zhejiang Tongxing vs. Dr Peng Telecom | Zhejiang Tongxing vs. Guangxi Wuzhou Communications | Zhejiang Tongxing vs. TianJin 712 Communication | Zhejiang Tongxing vs. Allwin Telecommunication Co |
| Tieling Newcity vs. Sanbo Hospital Management | Tieling Newcity vs. Chenzhou Jingui Silver | Tieling Newcity vs. Huizhou Speed Wireless | Tieling Newcity vs. Jiangxi Naipu Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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