Correlation Between Tingyi Holding and Avi
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Avi 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 Avi 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 Avi Ltd ADR, you can compare the effects of market volatilities on Tingyi Holding and Avi 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 Avi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Avi.
Diversification Opportunities for Tingyi Holding and Avi
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tingyi and Avi is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Avi Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avi Ltd ADR 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 Avi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avi Ltd ADR has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Avi go up and down completely randomly.
Pair Corralation between Tingyi Holding and Avi
If you would invest 2,810 in Avi Ltd ADR on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Avi Ltd ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Tingyi Holding Corp vs. Avi Ltd ADR
Performance |
| Timeline |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Avi Ltd ADR |
Tingyi Holding and Avi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and Avi
The main advantage of trading using opposite Tingyi Holding and Avi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Avi 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 Avi will offset losses from the drop in Avi'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 |
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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