Correlation Between Tingyi Holding and A2 Milk
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and A2 Milk 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 A2 Milk 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 The a2 Milk, you can compare the effects of market volatilities on Tingyi Holding and A2 Milk 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 A2 Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and A2 Milk.
Diversification Opportunities for Tingyi Holding and A2 Milk
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tingyi and ACOPF is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and The a2 Milk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on a2 Milk 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 A2 Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of a2 Milk has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and A2 Milk go up and down completely randomly.
Pair Corralation between Tingyi Holding and A2 Milk
If you would invest 381.00 in The a2 Milk on November 2, 2024 and sell it today you would lose (16.00) from holding The a2 Milk or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Tingyi Holding Corp vs. The a2 Milk
Performance |
| Timeline |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| a2 Milk |
Tingyi Holding and A2 Milk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and A2 Milk
The main advantage of trading using opposite Tingyi Holding and A2 Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, A2 Milk 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 A2 Milk will offset losses from the drop in A2 Milk's long position.| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
| A2 Milk vs. Artisan Consumer Goods | A2 Milk vs. Altavoz Entertainment | A2 Milk vs. Avi Ltd ADR | A2 Milk vs. Aryzta AG PK |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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