Correlation Between Tingyi Holding and Aryzta AG
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Aryzta AG 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 Aryzta AG 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 Aryzta AG PK, you can compare the effects of market volatilities on Tingyi Holding and Aryzta AG 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 Aryzta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Aryzta AG.
Diversification Opportunities for Tingyi Holding and Aryzta AG
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tingyi and Aryzta is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Aryzta AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aryzta AG PK 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 Aryzta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aryzta AG PK has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Aryzta AG go up and down completely randomly.
Pair Corralation between Tingyi Holding and Aryzta AG
If you would invest 86.00 in Aryzta AG PK on November 2, 2024 and sell it today you would earn a total of 11.00 from holding Aryzta AG PK or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Tingyi Holding Corp vs. Aryzta AG PK
Performance |
| Timeline |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aryzta AG PK |
Tingyi Holding and Aryzta AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and Aryzta AG
The main advantage of trading using opposite Tingyi Holding and Aryzta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Aryzta AG 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 Aryzta AG will offset losses from the drop in Aryzta AG'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 |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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