Correlation Between Xinjiang Tianrun and Tieling Newcity
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Tieling Newcity Investment, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Tieling Newcity.
Diversification Opportunities for Xinjiang Tianrun and Tieling Newcity
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinjiang and Tieling is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy 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 Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Tieling Newcity go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Tieling Newcity
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Tieling Newcity. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.27 times less risky than Tieling Newcity. The stock trades about -0.04 of its potential returns per unit of risk. The Tieling Newcity Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 295.00 in Tieling Newcity Investment on December 4, 2024 and sell it today you would lose (2.00) from holding Tieling Newcity Investment or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Tieling Newcity Investment
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Tieling Newcity Inve |
Xinjiang Tianrun and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Tieling Newcity
The main advantage of trading using opposite Xinjiang Tianrun and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Shenzhen SDG Information | Xinjiang Tianrun vs. Wintao Communications Co | Xinjiang Tianrun vs. Aba Chemicals Corp | Xinjiang Tianrun vs. SI TECH Information Technology |
| Tieling Newcity vs. Great Sun Foods Co | Tieling Newcity vs. Ping An Insurance | Tieling Newcity vs. Huaxia Fund Management | Tieling Newcity vs. Cansino Biologics |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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