Correlation Between Allwin Telecommunicatio and Longxing Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allwin Telecommunication Co and Longxing Chemical Stock, you can compare the effects of market volatilities on Allwin Telecommunicatio and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Longxing Chemical.
Diversification Opportunities for Allwin Telecommunicatio and Longxing Chemical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allwin and Longxing is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Longxing Chemical go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Longxing Chemical
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to under-perform the Longxing Chemical. In addition to that, Allwin Telecommunicatio is 1.16 times more volatile than Longxing Chemical Stock. It trades about -0.31 of its total potential returns per unit of risk. Longxing Chemical Stock is currently generating about -0.01 per unit of volatility. If you would invest 560.00 in Longxing Chemical Stock on October 11, 2024 and sell it today you would lose (13.00) from holding Longxing Chemical Stock or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. Longxing Chemical Stock
Performance |
| Timeline |
| Allwin Telecommunicatio |
| Longxing Chemical Stock |
Allwin Telecommunicatio and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and Longxing Chemical
The main advantage of trading using opposite Allwin Telecommunicatio and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.The idea behind Allwin Telecommunication Co and Longxing Chemical Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Longxing Chemical vs. Puya Semiconductor Shanghai | Longxing Chemical vs. Giantec Semiconductor Corp | Longxing Chemical vs. Allwin Telecommunication Co | Longxing Chemical vs. Nexchip Semiconductor Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |