Correlation Between Tingyi Holding and WH Group
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and WH Group 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 WH Group 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 WH Group Limited, you can compare the effects of market volatilities on Tingyi Holding and WH Group 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 WH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and WH Group.
Diversification Opportunities for Tingyi Holding and WH Group
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tingyi and WHGRF is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and WH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WH Group Limited 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 WH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WH Group Limited has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and WH Group go up and down completely randomly.
Pair Corralation between Tingyi Holding and WH Group
If you would invest 157.00 in Tingyi Holding Corp on November 2, 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 | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Tingyi Holding Corp vs. WH Group Limited
Performance |
| Timeline |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| WH Group Limited |
Tingyi Holding and WH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and WH Group
The main advantage of trading using opposite Tingyi Holding and WH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, WH Group 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 WH Group will offset losses from the drop in WH Group'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 |
| WH Group vs. Premier Foods Plc | WH Group vs. Torque Lifestyle Brands | WH Group vs. Naturally Splendid Enterprises | WH Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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