Correlation Between Tingyi Holding and Eagle Cold
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Eagle Cold 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 Tingyi Holding and Eagle Cold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tingyi Holding Corp and Eagle Cold Storage, you can compare the effects of market volatilities on Tingyi Holding and Eagle Cold 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 Tingyi Holding with a short position of Eagle Cold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Eagle Cold.
Diversification Opportunities for Tingyi Holding and Eagle Cold
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tingyi and Eagle is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Eagle Cold Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Cold Storage and Tingyi Holding 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 Tingyi Holding Corp are associated (or correlated) with Eagle Cold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Cold Storage has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Eagle Cold go up and down completely randomly.
Pair Corralation between Tingyi Holding and Eagle Cold
Assuming the 90 days trading horizon Tingyi Holding Corp is expected to under-perform the Eagle Cold. In addition to that, Tingyi Holding is 1.28 times more volatile than Eagle Cold Storage. It trades about -0.03 of its total potential returns per unit of risk. Eagle Cold Storage is currently generating about 0.07 per unit of volatility. If you would invest 1,969 in Eagle Cold Storage on September 3, 2024 and sell it today you would earn a total of 991.00 from holding Eagle Cold Storage or generate 50.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tingyi Holding Corp vs. Eagle Cold Storage
Performance |
| Timeline |
| Tingyi Holding Corp |
| Eagle Cold Storage |
Tingyi Holding and Eagle Cold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and Eagle Cold
The main advantage of trading using opposite Tingyi Holding and Eagle Cold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Eagle Cold 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 Eagle Cold will offset losses from the drop in Eagle Cold's long position.| Tingyi Holding vs. Uni President Enterprises Corp | Tingyi Holding vs. President Chain Store | Tingyi Holding vs. Formosa Chemicals Fibre | Tingyi Holding vs. Formosa Petrochemical Corp |
| Eagle Cold vs. Uni President Enterprises Corp | Eagle Cold vs. Lien Hwa Industrial | Eagle Cold vs. Great Wall Enterprise | Eagle Cold vs. Standard Foods Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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