Correlation Between Shanghai Material and Tieling Newcity
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By analyzing existing cross correlation between Shanghai Material Trading and Tieling Newcity Investment, you can compare the effects of market volatilities on Shanghai Material 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 Shanghai Material with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and Tieling Newcity.
Diversification Opportunities for Shanghai Material and Tieling Newcity
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Tieling is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading 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 Shanghai Material 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 Shanghai Material Trading 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 Shanghai Material i.e., Shanghai Material and Tieling Newcity go up and down completely randomly.
Pair Corralation between Shanghai Material and Tieling Newcity
Assuming the 90 days trading horizon Shanghai Material Trading is expected to under-perform the Tieling Newcity. In addition to that, Shanghai Material is 1.19 times more volatile than Tieling Newcity Investment. It trades about -0.12 of its total potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.15 per unit of volatility. If you would invest 298.00 in Tieling Newcity Investment on October 11, 2024 and sell it today you would earn a total of 32.00 from holding Tieling Newcity Investment or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. Tieling Newcity Investment
Performance |
| Timeline |
| Shanghai Material Trading |
| Tieling Newcity Inve |
Shanghai Material and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and Tieling Newcity
The main advantage of trading using opposite Shanghai Material and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material 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.| Shanghai Material vs. China Minmetals Rare | Shanghai Material vs. Xiandai Investment Co | Shanghai Material vs. Guangdong Jingyi Metal | Shanghai Material vs. Beijing Mainstreets Investment |
| Tieling Newcity vs. Cultural Investment Holdings | Tieling Newcity vs. Hangzhou Pinming Software | Tieling Newcity vs. Fujian Boss Software | Tieling Newcity vs. Shanghai Material Trading |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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