Correlation Between Fujian Nanwang and Tieling Newcity
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By analyzing existing cross correlation between Fujian Nanwang Environment and Tieling Newcity Investment, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Tieling Newcity.
Diversification Opportunities for Fujian Nanwang and Tieling Newcity
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Tieling is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment 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 Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and Tieling Newcity go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Tieling Newcity
Assuming the 90 days trading horizon Fujian Nanwang is expected to generate 1.12 times less return on investment than Tieling Newcity. But when comparing it to its historical volatility, Fujian Nanwang Environment is 1.85 times less risky than Tieling Newcity. It trades about 0.23 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Tieling Newcity Investment on October 12, 2024 and sell it today you would earn a total of 29.00 from holding Tieling Newcity Investment or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Tieling Newcity Investment
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Tieling Newcity Inve |
Fujian Nanwang and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Tieling Newcity
The main advantage of trading using opposite Fujian Nanwang and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. Songz Automobile Air | Fujian Nanwang vs. Allwin Telecommunication Co | Fujian Nanwang vs. Huizhou Speed Wireless | Fujian Nanwang vs. Fujian Longzhou Transportation |
| Tieling Newcity vs. Fujian Nanwang Environment | Tieling Newcity vs. Elite Color Environmental | Tieling Newcity vs. Dazhong Transportation Group | Tieling Newcity vs. XinJiang GuoTong Pipeline |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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