Correlation Between Bohai Leasing and Shenzhen Topway
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By analyzing existing cross correlation between Bohai Leasing Co and Shenzhen Topway Video, you can compare the effects of market volatilities on Bohai Leasing and Shenzhen Topway 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 Bohai Leasing with a short position of Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and Shenzhen Topway.
Diversification Opportunities for Bohai Leasing and Shenzhen Topway
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bohai and Shenzhen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Bohai Leasing and Shenzhen Topway
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 0.9 times more return on investment than Shenzhen Topway. However, Bohai Leasing Co is 1.11 times less risky than Shenzhen Topway. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.07 per unit of risk. If you would invest 219.00 in Bohai Leasing Co on October 16, 2024 and sell it today you would earn a total of 121.00 from holding Bohai Leasing Co or generate 55.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. Shenzhen Topway Video
Performance |
| Timeline |
| Bohai Leasing |
| Shenzhen Topway Video |
Bohai Leasing and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and Shenzhen Topway
The main advantage of trading using opposite Bohai Leasing and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| Bohai Leasing vs. Runjian Communication Co | Bohai Leasing vs. Chengdu Xinzhu RoadBridge | Bohai Leasing vs. Hunan TV Broadcast | Bohai Leasing vs. Nanjing Putian Telecommunications |
| Shenzhen Topway vs. Hefei Metalforming Mach | Shenzhen Topway vs. China Everbright Bank | Shenzhen Topway vs. Hua Xia Bank | Shenzhen Topway vs. Hainan Mining Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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