Correlation Between NEW MILLENNIUM and CHINA TONTINE

Can any of the company-specific risk be diversified away by investing in both NEW MILLENNIUM and CHINA TONTINE 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 NEW MILLENNIUM and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NEW MILLENNIUM IRON and CHINA TONTINE WINES, you can compare the effects of market volatilities on NEW MILLENNIUM and CHINA TONTINE 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 NEW MILLENNIUM with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEW MILLENNIUM and CHINA TONTINE.

Diversification Opportunities for NEW MILLENNIUM and CHINA TONTINE

0.0

Correlation Coefficient

NEW MILLENNIUM  CHINA TONTINE

Pay attention - limited upside

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

Pair Corralation between NEW MILLENNIUM and CHINA TONTINE

If you would invest  710.00  in NEW MILLENNIUM IRON on October 25, 2024 and sell it today you would earn a total of  50.00  from holding NEW MILLENNIUM IRON or generate 7.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

NEW MILLENNIUM IRON  vs.  CHINA TONTINE WINES

NEW MILLENNIUM IRON

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NEW MILLENNIUM IRON are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, NEW MILLENNIUM may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CHINA TONTINE WINES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHINA TONTINE WINES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CHINA TONTINE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with NEW MILLENNIUM and CHINA TONTINE

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

The idea behind NEW MILLENNIUM IRON and CHINA TONTINE WINES 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.