Correlation Between Rumble and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both Rumble 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 Rumble and Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rumble Inc and Tingyi Holding Corp, you can compare the effects of market volatilities on Rumble 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 Rumble with a short position of Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rumble and Tingyi Holding.
Diversification Opportunities for Rumble and Tingyi Holding
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rumble and Tingyi is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Rumble Inc 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 Rumble 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 Rumble Inc 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 Rumble i.e., Rumble and Tingyi Holding go up and down completely randomly.
Pair Corralation between Rumble and Tingyi Holding
If you would invest 615.00 in Rumble Inc on September 14, 2024 and sell it today you would earn a total of 199.00 from holding Rumble Inc or generate 32.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Rumble Inc vs. Tingyi Holding Corp
Performance |
| Timeline |
| Rumble Inc |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rumble and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rumble and Tingyi Holding
The main advantage of trading using opposite Rumble and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rumble 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.The idea behind Rumble Inc and Tingyi Holding Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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