Correlation Between Shenzhen Topway and Bohai Leasing
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By analyzing existing cross correlation between Shenzhen Topway Video and Bohai Leasing Co, you can compare the effects of market volatilities on Shenzhen Topway and Bohai Leasing 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 Topway with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Bohai Leasing.
Diversification Opportunities for Shenzhen Topway and Bohai Leasing
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Bohai is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Shenzhen Topway 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 Topway Video are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Bohai Leasing go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Bohai Leasing
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to under-perform the Bohai Leasing. In addition to that, Shenzhen Topway is 1.11 times more volatile than Bohai Leasing Co. It trades about -0.07 of its total potential returns per unit of risk. Bohai Leasing Co is currently generating about 0.07 per unit of volatility. If you would invest 219.00 in Bohai Leasing Co on October 16, 2024 and sell it today you would earn a total of 121.00 from holding Bohai Leasing Co or generate 55.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Bohai Leasing Co
Performance |
| Timeline |
| Shenzhen Topway Video |
| Bohai Leasing |
Shenzhen Topway and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Bohai Leasing
The main advantage of trading using opposite Shenzhen Topway and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Shenzhen Topway vs. Hefei Metalforming Mach | Shenzhen Topway vs. China Everbright Bank | Shenzhen Topway vs. Hua Xia Bank | Shenzhen Topway vs. Hainan Mining Co |
| Bohai Leasing vs. Runjian Communication Co | Bohai Leasing vs. Chengdu Xinzhu RoadBridge | Bohai Leasing vs. Hunan TV Broadcast | Bohai Leasing vs. Nanjing Putian Telecommunications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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