Correlation Between Datang HuaYin and Tieling Newcity
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By analyzing existing cross correlation between Datang HuaYin Electric and Tieling Newcity Investment, you can compare the effects of market volatilities on Datang HuaYin 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 Datang HuaYin with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and Tieling Newcity.
Diversification Opportunities for Datang HuaYin and Tieling Newcity
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Datang and Tieling is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric 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 Datang HuaYin 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 Datang HuaYin Electric 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 Datang HuaYin i.e., Datang HuaYin and Tieling Newcity go up and down completely randomly.
Pair Corralation between Datang HuaYin and Tieling Newcity
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to under-perform the Tieling Newcity. But the stock apears to be less risky and, when comparing its historical volatility, Datang HuaYin Electric is 1.39 times less risky than Tieling Newcity. The stock trades about -0.28 of its potential returns per unit of risk. The Tieling Newcity Investment is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 336.00 in Tieling Newcity Investment on October 20, 2024 and sell it today you would lose (16.00) from holding Tieling Newcity Investment or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang HuaYin Electric vs. Tieling Newcity Investment
Performance |
| Timeline |
| Datang HuaYin Electric |
| Tieling Newcity Inve |
Datang HuaYin and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and Tieling Newcity
The main advantage of trading using opposite Datang HuaYin and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin 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.| Datang HuaYin vs. Kweichow Moutai Co | Datang HuaYin vs. Contemporary Amperex Technology | Datang HuaYin vs. G bits Network Technology | Datang HuaYin vs. Beijing Roborock Technology |
| Tieling Newcity vs. BYD Co Ltd | Tieling Newcity vs. China Mobile Limited | Tieling Newcity vs. Agricultural Bank of | Tieling Newcity vs. Industrial and Commercial |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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