Correlation Between Xinya Electronic and Tianneng Battery
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By analyzing existing cross correlation between Xinya Electronic Co and Tianneng Battery Group, you can compare the effects of market volatilities on Xinya Electronic and Tianneng Battery 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 Xinya Electronic with a short position of Tianneng Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Tianneng Battery.
Diversification Opportunities for Xinya Electronic and Tianneng Battery
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinya and Tianneng is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Tianneng Battery Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianneng Battery and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with Tianneng Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianneng Battery has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and Tianneng Battery go up and down completely randomly.
Pair Corralation between Xinya Electronic and Tianneng Battery
Assuming the 90 days trading horizon Xinya Electronic Co is expected to generate 1.36 times more return on investment than Tianneng Battery. However, Xinya Electronic is 1.36 times more volatile than Tianneng Battery Group. It trades about 0.19 of its potential returns per unit of risk. Tianneng Battery Group is currently generating about -0.23 per unit of risk. If you would invest 1,335 in Xinya Electronic Co on September 20, 2024 and sell it today you would earn a total of 116.00 from holding Xinya Electronic Co or generate 8.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Xinya Electronic Co vs. Tianneng Battery Group
Performance |
Timeline |
Xinya Electronic |
Tianneng Battery |
Xinya Electronic and Tianneng Battery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinya Electronic and Tianneng Battery
The main advantage of trading using opposite Xinya Electronic and Tianneng Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, Tianneng Battery 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 Tianneng Battery will offset losses from the drop in Tianneng Battery's long position.Xinya Electronic vs. Gansu Jiu Steel | Xinya Electronic vs. Baoshan Iron Steel | Xinya Electronic vs. Shanghai Shuixing Home | Xinya Electronic vs. Guangzhou Restaurants Group |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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