Correlation Between Tieling Newcity and Anhui Deli
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By analyzing existing cross correlation between Tieling Newcity Investment and Anhui Deli Household, you can compare the effects of market volatilities on Tieling Newcity and Anhui Deli 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 Tieling Newcity with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Anhui Deli.
Diversification Opportunities for Tieling Newcity and Anhui Deli
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tieling and Anhui is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household and Tieling Newcity 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 Tieling Newcity Investment are associated (or correlated) with Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Anhui Deli go up and down completely randomly.
Pair Corralation between Tieling Newcity and Anhui Deli
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.76 times more return on investment than Anhui Deli. However, Tieling Newcity Investment is 1.32 times less risky than Anhui Deli. It trades about 0.28 of its potential returns per unit of risk. Anhui Deli Household is currently generating about 0.01 per unit of risk. If you would invest 203.00 in Tieling Newcity Investment on September 26, 2024 and sell it today you would earn a total of 102.00 from holding Tieling Newcity Investment or generate 50.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tieling Newcity Investment vs. Anhui Deli Household
Performance |
Timeline |
Tieling Newcity Inve |
Anhui Deli Household |
Tieling Newcity and Anhui Deli Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tieling Newcity and Anhui Deli
The main advantage of trading using opposite Tieling Newcity and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.Tieling Newcity vs. Eastroc Beverage Group | Tieling Newcity vs. Sinocat Environmental Technology | Tieling Newcity vs. Bengang Steel Plates | Tieling Newcity vs. Aofu Environmental Technology |
Anhui Deli vs. Tieling Newcity Investment | Anhui Deli vs. Hubei Geoway Investment | Anhui Deli vs. Hubei Xingfa Chemicals | Anhui Deli vs. Postal Savings Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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