Correlation Between Tingyi Holding and Fraser

Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Fraser 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 Fraser 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 Fraser and Neave, you can compare the effects of market volatilities on Tingyi Holding and Fraser 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 Fraser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Fraser.

Diversification Opportunities for Tingyi Holding and Fraser

0.0

Correlation Coefficient

Tingyi Holding  Fraser

Pay attention - limited upside

The 3 months correlation between Tingyi and Fraser is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Fraser and Neave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fraser and Neave 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 Fraser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fraser and Neave has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Fraser go up and down completely randomly.

Pair Corralation between Tingyi Holding and Fraser

If you would invest  426.00  in Fraser and Neave on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Fraser and Neave or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Tingyi Holding Corp  vs.  Fraser and Neave

Tingyi Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tingyi Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Tingyi Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fraser and Neave

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fraser and Neave has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Fraser is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tingyi Holding and Fraser

The main advantage of trading using opposite Tingyi Holding and Fraser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Fraser 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 Fraser will offset losses from the drop in Fraser's long position.

The idea behind Tingyi Holding Corp and Fraser and Neave pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.