Correlation Between Tingyi Holding and Argosy Research

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

Diversification Opportunities for Tingyi Holding and Argosy Research

-0.43

Correlation Coefficient

Tingyi Holding  Argosy Research

Very good diversification

The 3 months correlation between Tingyi and Argosy is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Argosy Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Research 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 Argosy Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Research has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Argosy Research go up and down completely randomly.

Pair Corralation between Tingyi Holding and Argosy Research

Assuming the 90 days trading horizon Tingyi Holding Corp is expected to generate 1.1 times more return on investment than Argosy Research. However, Tingyi Holding is 1.1 times more volatile than Argosy Research. It trades about 0.13 of its potential returns per unit of risk. Argosy Research is currently generating about 0.13 per unit of risk. If you would invest  2,050  in Tingyi Holding Corp on October 4, 2024 and sell it today you would earn a total of  65.00  from holding Tingyi Holding Corp or generate 3.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Tingyi Holding Corp  vs.  Argosy Research

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 abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Argosy Research

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Argosy Research are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Argosy Research may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Tingyi Holding and Argosy Research

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

The idea behind Tingyi Holding Corp and Argosy Research 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.