Correlation Between Tingyi Holding and Premier Foods
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Premier Foods 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 Premier Foods 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 Premier Foods Plc, you can compare the effects of market volatilities on Tingyi Holding and Premier Foods 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 Premier Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Premier Foods.
Diversification Opportunities for Tingyi Holding and Premier Foods
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tingyi and Premier is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Premier Foods Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Foods Plc 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 Premier Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Foods Plc has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Premier Foods go up and down completely randomly.
Pair Corralation between Tingyi Holding and Premier Foods
If you would invest 208.00 in Premier Foods Plc on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Premier Foods Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tingyi Holding Corp vs. Premier Foods Plc
Performance |
| Timeline |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Premier Foods Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tingyi Holding and Premier Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and Premier Foods
The main advantage of trading using opposite Tingyi Holding and Premier Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Premier Foods 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 Premier Foods will offset losses from the drop in Premier Foods' 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 |
| Premier Foods vs. Torque Lifestyle Brands | Premier Foods vs. Naturally Splendid Enterprises | Premier Foods vs. Aryzta AG PK | Premier Foods vs. Premier Foods Plc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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