Correlation Between Tieling Newcity and Marssenger Kitchenware
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By analyzing existing cross correlation between Tieling Newcity Investment and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Tieling Newcity and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Marssenger Kitchenware.
Diversification Opportunities for Tieling Newcity and Marssenger Kitchenware
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tieling and Marssenger is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Tieling Newcity and Marssenger Kitchenware
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.8 times more return on investment than Marssenger Kitchenware. However, Tieling Newcity Investment is 1.25 times less risky than Marssenger Kitchenware. It trades about 0.01 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.03 per unit of risk. If you would invest 309.00 in Tieling Newcity Investment on September 26, 2024 and sell it today you would lose (4.00) from holding Tieling Newcity Investment or give up 1.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Tieling Newcity Investment vs. Marssenger Kitchenware Co
Performance |
Timeline |
Tieling Newcity Inve |
Marssenger Kitchenware |
Tieling Newcity and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tieling Newcity and Marssenger Kitchenware
The main advantage of trading using opposite Tieling Newcity and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware'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 |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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