Correlation Between China Asset and Tieling Newcity
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By analyzing existing cross correlation between China Asset Management and Tieling Newcity Investment, you can compare the effects of market volatilities on China Asset and Tieling Newcity 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 China Asset with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Tieling Newcity.
Diversification Opportunities for China Asset and Tieling Newcity
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Tieling is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve and China Asset 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 China Asset Management are associated (or correlated) with Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of China Asset i.e., China Asset and Tieling Newcity go up and down completely randomly.
Pair Corralation between China Asset and Tieling Newcity
Assuming the 90 days trading horizon China Asset is expected to generate 1.04 times less return on investment than Tieling Newcity. But when comparing it to its historical volatility, China Asset Management is 2.41 times less risky than Tieling Newcity. It trades about 0.42 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Tieling Newcity Investment on September 25, 2024 and sell it today you would earn a total of 32.00 from holding Tieling Newcity Investment or generate 11.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Asset Management vs. Tieling Newcity Investment
Performance |
Timeline |
China Asset Management |
Tieling Newcity Inve |
China Asset and Tieling Newcity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Asset and Tieling Newcity
The main advantage of trading using opposite China Asset and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
Tieling Newcity vs. Eastroc Beverage Group | Tieling Newcity vs. Sinocat Environmental Technology | Tieling Newcity vs. Bengang Steel Plates | Tieling Newcity vs. Aofu Environmental Technology |
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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