Correlation Between Allwin Telecommunicatio and China Merchants
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allwin Telecommunication Co and China Merchants Shekou, you can compare the effects of market volatilities on Allwin Telecommunicatio and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and China Merchants.
Diversification Opportunities for Allwin Telecommunicatio and China Merchants
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allwin and China is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and China Merchants go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and China Merchants
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 1.5 times more return on investment than China Merchants. However, Allwin Telecommunicatio is 1.5 times more volatile than China Merchants Shekou. It trades about 0.06 of its potential returns per unit of risk. China Merchants Shekou is currently generating about 0.03 per unit of risk. If you would invest 366.00 in Allwin Telecommunication Co on November 5, 2024 and sell it today you would earn a total of 166.00 from holding Allwin Telecommunication Co or generate 45.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. China Merchants Shekou
Performance |
| Timeline |
| Allwin Telecommunicatio |
| China Merchants Shekou |
Allwin Telecommunicatio and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and China Merchants
The main advantage of trading using opposite Allwin Telecommunicatio and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| Allwin Telecommunicatio vs. Holitech Technology Co | Allwin Telecommunicatio vs. Linewell Software Co | Allwin Telecommunicatio vs. Chengdu B ray Media | Allwin Telecommunicatio vs. Mango Excellent Media |
| China Merchants vs. Hubei Tech Semiconductors | China Merchants vs. Hangzhou Pinming Software | China Merchants vs. Beijing Baolande Software | China Merchants vs. Southchip Semiconductor Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |