Correlation Between Shanghai Suochen and Tieling Newcity
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By analyzing existing cross correlation between Shanghai Suochen Information and Tieling Newcity Investment, you can compare the effects of market volatilities on Shanghai Suochen 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 Suochen with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Suochen and Tieling Newcity.
Diversification Opportunities for Shanghai Suochen and Tieling Newcity
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Tieling is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Suochen Information 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 Suochen 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 Suochen Information 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 Suochen i.e., Shanghai Suochen and Tieling Newcity go up and down completely randomly.
Pair Corralation between Shanghai Suochen and Tieling Newcity
Assuming the 90 days trading horizon Shanghai Suochen Information is expected to generate 1.87 times more return on investment than Tieling Newcity. However, Shanghai Suochen is 1.87 times more volatile than Tieling Newcity Investment. It trades about 0.27 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about -0.01 per unit of risk. If you would invest 5,773 in Shanghai Suochen Information on December 11, 2024 and sell it today you would earn a total of 3,117 from holding Shanghai Suochen Information or generate 53.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Suochen Information vs. Tieling Newcity Investment
Performance |
| Timeline |
| Shanghai Suochen Inf |
| Tieling Newcity Inve |
Shanghai Suochen and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Suochen and Tieling Newcity
The main advantage of trading using opposite Shanghai Suochen and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Suochen 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 Suochen vs. Agricultural Bank of | Shanghai Suochen vs. Industrial and Commercial | Shanghai Suochen vs. Bank of China | Shanghai Suochen vs. China Construction Bank |
| Tieling Newcity vs. Kale Environmental Technology | Tieling Newcity vs. Huaibei Mining Holdings | Tieling Newcity vs. Shandong Mining Machinery | Tieling Newcity vs. Tibet Huayu Mining |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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