Correlation Between TONGDAO LIEPGR and Meitec
Can any of the company-specific risk be diversified away by investing in both TONGDAO LIEPGR and Meitec at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TONGDAO LIEPGR and Meitec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TONGDAO LIEPGR DL 0001 and Meitec, you can compare the effects of market volatilities on TONGDAO LIEPGR and Meitec 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 TONGDAO LIEPGR with a short position of Meitec. Check out your portfolio center. Please also check ongoing floating volatility patterns of TONGDAO LIEPGR and Meitec.
Diversification Opportunities for TONGDAO LIEPGR and Meitec
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TONGDAO and Meitec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TONGDAO LIEPGR DL 0001 and Meitec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitec and TONGDAO LIEPGR 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 TONGDAO LIEPGR DL 0001 are associated (or correlated) with Meitec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitec has no effect on the direction of TONGDAO LIEPGR i.e., TONGDAO LIEPGR and Meitec go up and down completely randomly.
Pair Corralation between TONGDAO LIEPGR and Meitec
If you would invest 26.00 in TONGDAO LIEPGR DL 0001 on August 30, 2024 and sell it today you would earn a total of 1.00 from holding TONGDAO LIEPGR DL 0001 or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TONGDAO LIEPGR DL 0001 vs. Meitec
Performance |
| Timeline |
| TONGDAO LIEPGR DL |
| Meitec |
TONGDAO LIEPGR and Meitec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TONGDAO LIEPGR and Meitec
The main advantage of trading using opposite TONGDAO LIEPGR and Meitec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TONGDAO LIEPGR position performs unexpectedly, Meitec 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 Meitec will offset losses from the drop in Meitec's long position.| TONGDAO LIEPGR vs. Recruit Holdings Co | TONGDAO LIEPGR vs. Randstad NV | TONGDAO LIEPGR vs. TRINET GROUP INC |
| Meitec vs. Recruit Holdings Co | Meitec vs. Randstad NV | Meitec vs. TRINET GROUP INC | Meitec vs. TONGDAO LIEPGR DL 0001 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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