Correlation Between Touchstone International and Tieling Newcity
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By analyzing existing cross correlation between Touchstone International Medical and Tieling Newcity Investment, you can compare the effects of market volatilities on Touchstone International 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 Touchstone International with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and Tieling Newcity.
Diversification Opportunities for Touchstone International and Tieling Newcity
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Touchstone and Tieling is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic 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 Touchstone International 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 Touchstone International Medical 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 Touchstone International i.e., Touchstone International and Tieling Newcity go up and down completely randomly.
Pair Corralation between Touchstone International and Tieling Newcity
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 0.99 times more return on investment than Tieling Newcity. However, Touchstone International Medical is 1.01 times less risky than Tieling Newcity. It trades about 0.0 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about -0.03 per unit of risk. If you would invest 2,283 in Touchstone International Medical on August 31, 2024 and sell it today you would lose (365.00) from holding Touchstone International Medical or give up 15.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Touchstone International Medic vs. Tieling Newcity Investment
Performance |
| Timeline |
| Touchstone International |
| Tieling Newcity Inve |
Touchstone International and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and Tieling Newcity
The main advantage of trading using opposite Touchstone International and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International 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.| Touchstone International vs. PetroChina Co Ltd | Touchstone International vs. China Mobile Limited | Touchstone International vs. Ping An Insurance | Touchstone International vs. China Petroleum Chemical |
| Tieling Newcity vs. Cultural Investment Holdings | Tieling Newcity vs. Gome Telecom Equipment | Tieling Newcity vs. Bus Online Co | Tieling Newcity vs. Holitech Technology Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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