Correlation Between Tengda Construction and Nanjing Vishee
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By analyzing existing cross correlation between Tengda Construction Group and Nanjing Vishee Medical, you can compare the effects of market volatilities on Tengda Construction and Nanjing Vishee 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 Tengda Construction with a short position of Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Nanjing Vishee.
Diversification Opportunities for Tengda Construction and Nanjing Vishee
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tengda and Nanjing is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical and Tengda Construction 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 Tengda Construction Group are associated (or correlated) with Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Tengda Construction i.e., Tengda Construction and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Tengda Construction and Nanjing Vishee
Assuming the 90 days trading horizon Tengda Construction Group is expected to generate 0.75 times more return on investment than Nanjing Vishee. However, Tengda Construction Group is 1.34 times less risky than Nanjing Vishee. It trades about -0.11 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.15 per unit of risk. If you would invest 251.00 in Tengda Construction Group on October 11, 2024 and sell it today you would lose (26.00) from holding Tengda Construction Group or give up 10.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Tengda Construction |
| Nanjing Vishee Medical |
Tengda Construction and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and Nanjing Vishee
The main advantage of trading using opposite Tengda Construction and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Tengda Construction vs. Zhejiang JIULI Hi tech | Tengda Construction vs. Wonders Information | Tengda Construction vs. Biwin Storage Technology | Tengda Construction vs. Tianjin Hi Tech Development |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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