Correlation Between Shenzhen Hifuture and Topsec Technologies
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Topsec Technologies Group, you can compare the effects of market volatilities on Shenzhen Hifuture and Topsec Technologies 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 Hifuture with a short position of Topsec Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Topsec Technologies.
Diversification Opportunities for Shenzhen Hifuture and Topsec Technologies
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Topsec is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Topsec Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topsec Technologies and Shenzhen Hifuture 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 Hifuture Electric are associated (or correlated) with Topsec Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topsec Technologies has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Topsec Technologies go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Topsec Technologies
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Topsec Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.15 times less risky than Topsec Technologies. The stock trades about -0.01 of its potential returns per unit of risk. The Topsec Technologies Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 422.00 in Topsec Technologies Group on November 2, 2024 and sell it today you would earn a total of 296.00 from holding Topsec Technologies Group or generate 70.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.98% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Topsec Technologies Group
Performance |
| Timeline |
| Shenzhen Hifuture |
| Topsec Technologies |
Shenzhen Hifuture and Topsec Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Topsec Technologies
The main advantage of trading using opposite Shenzhen Hifuture and Topsec Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Topsec Technologies 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 Topsec Technologies will offset losses from the drop in Topsec Technologies' long position.| Shenzhen Hifuture vs. Tjk Machinery Tianjin | Shenzhen Hifuture vs. Anhui Huilong Agricultural | Shenzhen Hifuture vs. Senci Electric Machinery | Shenzhen Hifuture vs. Sunny Loan Top |
| Topsec Technologies vs. Industrial and Commercial | Topsec Technologies vs. Agricultural Bank of | Topsec Technologies vs. China Construction Bank | Topsec Technologies vs. Bank of China |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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