Correlation Between Tingyi Holding and Neo Neon
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Neo Neon 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 Neo Neon 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 Neo Neon Holdings Limited, you can compare the effects of market volatilities on Tingyi Holding and Neo Neon 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 Neo Neon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Neo Neon.
Diversification Opportunities for Tingyi Holding and Neo Neon
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tingyi and Neo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Neo Neon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Neon Holdings 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 Neo Neon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Neon Holdings has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Neo Neon go up and down completely randomly.
Pair Corralation between Tingyi Holding and Neo Neon
Assuming the 90 days trading horizon Tingyi Holding Corp is expected to under-perform the Neo Neon. In addition to that, Tingyi Holding is 1.12 times more volatile than Neo Neon Holdings Limited. It trades about -0.08 of its total potential returns per unit of risk. Neo Neon Holdings Limited is currently generating about 0.11 per unit of volatility. If you would invest 147.00 in Neo Neon Holdings Limited on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Neo Neon Holdings Limited or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tingyi Holding Corp vs. Neo Neon Holdings Limited
Performance |
| Timeline |
| Tingyi Holding Corp |
| Neo Neon Holdings |
Tingyi Holding and Neo Neon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and Neo Neon
The main advantage of trading using opposite Tingyi Holding and Neo Neon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Neo Neon 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 Neo Neon will offset losses from the drop in Neo Neon's long position.| Tingyi Holding vs. Uni President Enterprises Corp | Tingyi Holding vs. Lien Hwa Industrial | Tingyi Holding vs. Great Wall Enterprise | Tingyi Holding vs. Standard Foods Corp |
| Neo Neon vs. ANJI Technology Co | Neo Neon vs. Emerging Display Technologies | Neo Neon vs. U Tech Media Corp | Neo Neon vs. Ruentex Development 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 Stocks Directory module to find actively traded stocks across global markets.
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