Correlation Between Shenzhen SDG and Allwin Telecommunicatio
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By analyzing existing cross correlation between Shenzhen SDG Information and Allwin Telecommunication Co, you can compare the effects of market volatilities on Shenzhen SDG and Allwin Telecommunicatio 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 SDG with a short position of Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Allwin Telecommunicatio.
Diversification Opportunities for Shenzhen SDG and Allwin Telecommunicatio
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Allwin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio and Shenzhen SDG 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 SDG Information are associated (or correlated) with Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Allwin Telecommunicatio
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 0.88 times more return on investment than Allwin Telecommunicatio. However, Shenzhen SDG Information is 1.13 times less risky than Allwin Telecommunicatio. It trades about -0.03 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.06 per unit of risk. If you would invest 575.00 in Shenzhen SDG Information on November 1, 2024 and sell it today you would lose (13.00) from holding Shenzhen SDG Information or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| Allwin Telecommunicatio |
Shenzhen SDG and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Allwin Telecommunicatio
The main advantage of trading using opposite Shenzhen SDG and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Shenzhen SDG vs. Jiangsu Financial Leasing | Shenzhen SDG vs. AUPU Home Style | Shenzhen SDG vs. Fujian Oriental Silver | Shenzhen SDG vs. Oppein Home Group |
| Allwin Telecommunicatio vs. Lotus Health Group | Allwin Telecommunicatio vs. De Rucci Healthy | Allwin Telecommunicatio vs. Goodwill E Health | Allwin Telecommunicatio vs. Hengli Industrial Development |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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