Correlation Between Tieling Newcity and OneConstruction Group

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Can any of the company-specific risk be diversified away by investing in both Tieling Newcity and OneConstruction Group 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 Tieling Newcity and OneConstruction Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tieling Newcity Investment and OneConstruction Group Limited, you can compare the effects of market volatilities on Tieling Newcity and OneConstruction Group 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 Tieling Newcity with a short position of OneConstruction Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and OneConstruction Group.

Diversification Opportunities for Tieling Newcity and OneConstruction Group

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between Tieling and OneConstruction is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and OneConstruction Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneConstruction Group and Tieling Newcity 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 Tieling Newcity Investment are associated (or correlated) with OneConstruction Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneConstruction Group has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and OneConstruction Group go up and down completely randomly.

Pair Corralation between Tieling Newcity and OneConstruction Group

Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.28 times more return on investment than OneConstruction Group. However, Tieling Newcity Investment is 3.56 times less risky than OneConstruction Group. It trades about 0.03 of its potential returns per unit of risk. OneConstruction Group Limited is currently generating about -0.24 per unit of risk. If you would invest  331.00  in Tieling Newcity Investment on September 9, 2025 and sell it today you would earn a total of  9.00  from holding Tieling Newcity Investment or generate 2.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy92.31%
ValuesDaily Returns

Tieling Newcity Investment  vs.  OneConstruction Group Limited

 Performance 
       Timeline  
Tieling Newcity Inve 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Tieling Newcity Investment are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Tieling Newcity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
OneConstruction Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days OneConstruction Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Tieling Newcity and OneConstruction Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Tieling Newcity and OneConstruction Group

The main advantage of trading using opposite Tieling Newcity and OneConstruction Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, OneConstruction Group 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 OneConstruction Group will offset losses from the drop in OneConstruction Group's long position.
The idea behind Tieling Newcity Investment and OneConstruction Group Limited 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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