Correlation Between Allwin Telecommunicatio and Shenzhen Centralcon
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By analyzing existing cross correlation between Allwin Telecommunication Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Allwin Telecommunicatio and Shenzhen Centralcon 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 Allwin Telecommunicatio with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Shenzhen Centralcon.
Diversification Opportunities for Allwin Telecommunicatio and Shenzhen Centralcon
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allwin and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Allwin Telecommunicatio 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 Allwin Telecommunication Co are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Shenzhen Centralcon
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to under-perform the Shenzhen Centralcon. In addition to that, Allwin Telecommunicatio is 1.55 times more volatile than Shenzhen Centralcon Investment. It trades about -0.02 of its total potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.06 per unit of volatility. If you would invest 526.00 in Shenzhen Centralcon Investment on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Shenzhen Centralcon Investment or generate 2.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Allwin Telecommunication Co vs. Shenzhen Centralcon Investment
Performance |
Timeline |
Allwin Telecommunicatio |
Shenzhen Centralcon |
Allwin Telecommunicatio and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allwin Telecommunicatio and Shenzhen Centralcon
The main advantage of trading using opposite Allwin Telecommunicatio and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Shenzhen Centralcon 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 Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. Kweichow Moutai Co | Allwin Telecommunicatio vs. Agricultural Bank of | Allwin Telecommunicatio vs. China Mobile Limited |
Shenzhen Centralcon vs. Anhui Huilong Agricultural | Shenzhen Centralcon vs. Huitong Construction Group | Shenzhen Centralcon vs. Kuangda Technology Group | Shenzhen Centralcon vs. Allied Machinery 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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