Correlation Between New China and Talkweb Information
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By analyzing existing cross correlation between New China Life and Talkweb Information System, you can compare the effects of market volatilities on New China and Talkweb Information 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 New China with a short position of Talkweb Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Talkweb Information.
Diversification Opportunities for New China and Talkweb Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Talkweb is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Talkweb Information System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talkweb Information and New China 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 New China Life are associated (or correlated) with Talkweb Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talkweb Information has no effect on the direction of New China i.e., New China and Talkweb Information go up and down completely randomly.
Pair Corralation between New China and Talkweb Information
Assuming the 90 days trading horizon New China is expected to generate 2.25 times less return on investment than Talkweb Information. But when comparing it to its historical volatility, New China Life is 1.76 times less risky than Talkweb Information. It trades about 0.06 of its potential returns per unit of risk. Talkweb Information System is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 676.00 in Talkweb Information System on September 5, 2024 and sell it today you would earn a total of 1,364 from holding Talkweb Information System or generate 201.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Talkweb Information System
Performance |
| Timeline |
| New China Life |
| Talkweb Information |
New China and Talkweb Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Talkweb Information
The main advantage of trading using opposite New China and Talkweb Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China position performs unexpectedly, Talkweb Information 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 Talkweb Information will offset losses from the drop in Talkweb Information's long position.| New China vs. Xiwang Foodstuffs Co | New China vs. Unigroup Guoxin Microelectronics | New China vs. Puyang Huicheng Electronic | New China vs. Youyou Foods Co |
| Talkweb Information vs. New China Life | Talkweb Information vs. Ming Yang Smart | Talkweb Information vs. 159681 | Talkweb Information vs. 159005 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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