Correlation Between Shenzhen Topway and Shenzhen New
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By analyzing existing cross correlation between Shenzhen Topway Video and Shenzhen New Nanshan, you can compare the effects of market volatilities on Shenzhen Topway and Shenzhen New 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 Shenzhen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Shenzhen New.
Diversification Opportunities for Shenzhen Topway and Shenzhen New
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 Shenzhen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Shenzhen New go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Shenzhen New
Assuming the 90 days trading horizon Shenzhen Topway is expected to generate 1.17 times less return on investment than Shenzhen New. In addition to that, Shenzhen Topway is 1.32 times more volatile than Shenzhen New Nanshan. It trades about 0.12 of its total potential returns per unit of risk. Shenzhen New Nanshan is currently generating about 0.19 per unit of volatility. If you would invest 269.00 in Shenzhen New Nanshan on September 12, 2024 and sell it today you would earn a total of 38.00 from holding Shenzhen New Nanshan or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Shenzhen New Nanshan
Performance |
| Timeline |
| Shenzhen Topway Video |
| Shenzhen New Nanshan |
Shenzhen Topway and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Shenzhen New
The main advantage of trading using opposite Shenzhen Topway and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New's long position.| Shenzhen Topway vs. Kweichow Moutai Co | Shenzhen Topway vs. Shenzhen Mindray Bio Medical | Shenzhen Topway vs. G bits Network Technology | Shenzhen Topway vs. Beijing Roborock Technology |
| Shenzhen New vs. ZYF Lopsking Aluminum | Shenzhen New vs. Shenzhen Topway Video | Shenzhen New vs. Hengkang Medical Group | Shenzhen New vs. Shandong Polymer Biochemicals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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