Correlation Between Shenwu Energy and Techshine Electronics
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By analyzing existing cross correlation between Shenwu Energy Saving and Techshine Electronics Co, you can compare the effects of market volatilities on Shenwu Energy and Techshine Electronics 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 Shenwu Energy with a short position of Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Techshine Electronics.
Diversification Opportunities for Shenwu Energy and Techshine Electronics
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and Techshine is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics and Shenwu Energy 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 Shenwu Energy Saving are associated (or correlated) with Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Techshine Electronics go up and down completely randomly.
Pair Corralation between Shenwu Energy and Techshine Electronics
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to under-perform the Techshine Electronics. In addition to that, Shenwu Energy is 1.05 times more volatile than Techshine Electronics Co. It trades about 0.0 of its total potential returns per unit of risk. Techshine Electronics Co is currently generating about 0.02 per unit of volatility. If you would invest 1,889 in Techshine Electronics Co on October 13, 2024 and sell it today you would earn a total of 8.00 from holding Techshine Electronics Co or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Techshine Electronics Co
Performance |
| Timeline |
| Shenwu Energy Saving |
| Techshine Electronics |
Shenwu Energy and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Techshine Electronics
The main advantage of trading using opposite Shenwu Energy and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Shenwu Energy vs. Shandong Homey Aquatic | Shenwu Energy vs. Tianshan Aluminum Group | Shenwu Energy vs. Rising Nonferrous Metals | Shenwu Energy vs. Zoy Home Furnishing |
| Techshine Electronics vs. Anhui Tongguan Copper | Techshine Electronics vs. Beijing HuaYuanYiTong Thermal | Techshine Electronics vs. Rising Nonferrous Metals | Techshine Electronics vs. Shenwu Energy Saving |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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