Correlation Between Shenzhen Fortune and Tieling Newcity
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Tieling Newcity Investment, you can compare the effects of market volatilities on Shenzhen Fortune 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 Shenzhen Fortune with a short position of Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Tieling Newcity.
Diversification Opportunities for Shenzhen Fortune and Tieling Newcity
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Tieling is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend 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 Shenzhen Fortune 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 Shenzhen Fortune Trend 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 Shenzhen Fortune i.e., Shenzhen Fortune and Tieling Newcity go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Tieling Newcity
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 3.27 times more return on investment than Tieling Newcity. However, Shenzhen Fortune is 3.27 times more volatile than Tieling Newcity Investment. It trades about 0.23 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.28 per unit of risk. If you would invest 8,930 in Shenzhen Fortune Trend on September 8, 2024 and sell it today you would earn a total of 11,270 from holding Shenzhen Fortune Trend or generate 126.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Fortune Trend vs. Tieling Newcity Investment
Performance |
Timeline |
Shenzhen Fortune Trend |
Tieling Newcity Inve |
Shenzhen Fortune and Tieling Newcity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Fortune and Tieling Newcity
The main advantage of trading using opposite Shenzhen Fortune and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune 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.Shenzhen Fortune vs. Xiamen Bank Co | Shenzhen Fortune vs. Ping An Insurance | Shenzhen Fortune vs. Ningbo Tech Bank Co | Shenzhen Fortune vs. Qilu Bank Co |
Tieling Newcity vs. BeiGene | Tieling Newcity vs. Kweichow Moutai Co | Tieling Newcity vs. Beijing Roborock Technology | Tieling Newcity vs. G bits Network 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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