Correlation Between Sprott Focus and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both Sprott Focus and Tingyi Holding 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 Sprott Focus and Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Focus Trust and Tingyi Holding Corp, you can compare the effects of market volatilities on Sprott Focus and Tingyi Holding 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 Sprott Focus with a short position of Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Focus and Tingyi Holding.
Diversification Opportunities for Sprott Focus and Tingyi Holding
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sprott and Tingyi is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Focus Trust and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding Corp and Sprott Focus 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 Sprott Focus Trust are associated (or correlated) with Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of Sprott Focus i.e., Sprott Focus and Tingyi Holding go up and down completely randomly.
Pair Corralation between Sprott Focus and Tingyi Holding
If you would invest 701.00 in Sprott Focus Trust on September 14, 2024 and sell it today you would earn a total of 72.00 from holding Sprott Focus Trust or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Sprott Focus Trust vs. Tingyi Holding Corp
Performance |
| Timeline |
| Sprott Focus Trust |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sprott Focus and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Focus and Tingyi Holding
The main advantage of trading using opposite Sprott Focus and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Focus position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding's long position.| Sprott Focus vs. MFS Investment Grade | Sprott Focus vs. Eaton Vance National | Sprott Focus vs. Nuveen California Select | Sprott Focus vs. Federated Premier Municipal |
| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |