Correlation Between Tingyi Holding and First Pacific
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and First Pacific 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 First Pacific 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 First Pacific, you can compare the effects of market volatilities on Tingyi Holding and First Pacific 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 First Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and First Pacific.
Diversification Opportunities for Tingyi Holding and First Pacific
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tingyi and First is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and First Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Pacific 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 First Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Pacific has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and First Pacific go up and down completely randomly.
Pair Corralation between Tingyi Holding and First Pacific
If you would invest 157.00 in Tingyi Holding Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Tingyi Holding Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Tingyi Holding Corp vs. First Pacific
Performance |
| Timeline |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Pacific |
Tingyi Holding and First Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and First Pacific
The main advantage of trading using opposite Tingyi Holding and First Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, First Pacific 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 First Pacific will offset losses from the drop in First Pacific'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 |
| First Pacific vs. BRF SA ADR | First Pacific vs. Flowers Foods | First Pacific vs. Premier Foods Plc | First Pacific vs. Torque Lifestyle Brands |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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