Correlation Between Shenzhen Clou and Taiji Computer
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Taiji Computer Corp, you can compare the effects of market volatilities on Shenzhen Clou and Taiji Computer 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 Clou with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Taiji Computer.
Diversification Opportunities for Shenzhen Clou and Taiji Computer
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Taiji is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and Shenzhen Clou 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 Clou Electronics are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Taiji Computer go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Taiji Computer
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to under-perform the Taiji Computer. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Clou Electronics is 1.31 times less risky than Taiji Computer. The stock trades about -0.07 of its potential returns per unit of risk. The Taiji Computer Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,838 in Taiji Computer Corp on October 14, 2024 and sell it today you would lose (1,722) from holding Taiji Computer Corp or give up 44.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Taiji Computer Corp
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Taiji Computer Corp |
Shenzhen Clou and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Taiji Computer
The main advantage of trading using opposite Shenzhen Clou and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Shenzhen Clou vs. Southern PublishingMedia Co | Shenzhen Clou vs. Will Semiconductor Co | Shenzhen Clou vs. StarPower Semiconductor | Shenzhen Clou vs. Offcn Education Technology |
| Taiji Computer vs. Jiangsu Jinling Sports | Taiji Computer vs. Nanxing Furniture Machinery | Taiji Computer vs. Dazhong Transportation Group | Taiji Computer vs. Shaanxi Construction Machinery |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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