Correlation Between Shenzhen Topway and Dongguan Chitwing
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By analyzing existing cross correlation between Shenzhen Topway Video and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Shenzhen Topway and Dongguan Chitwing 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 Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Dongguan Chitwing.
Diversification Opportunities for Shenzhen Topway and Dongguan Chitwing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Dongguan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing 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 Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Dongguan Chitwing
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to generate 0.92 times more return on investment than Dongguan Chitwing. However, Shenzhen Topway Video is 1.09 times less risky than Dongguan Chitwing. It trades about 0.04 of its potential returns per unit of risk. Dongguan Chitwing Technology is currently generating about 0.0 per unit of risk. If you would invest 865.00 in Shenzhen Topway Video on September 1, 2024 and sell it today you would earn a total of 157.00 from holding Shenzhen Topway Video or generate 18.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Dongguan Chitwing Technology
Performance |
| Timeline |
| Shenzhen Topway Video |
| Dongguan Chitwing |
Shenzhen Topway and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Dongguan Chitwing
The main advantage of trading using opposite Shenzhen Topway and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| Shenzhen Topway vs. Eastroc Beverage Group | Shenzhen Topway vs. Dezhan HealthCare Co | Shenzhen Topway vs. Humanwell Healthcare Group | Shenzhen Topway vs. Offshore Oil Engineering |
| Dongguan Chitwing vs. China Petroleum Chemical | Dongguan Chitwing vs. PetroChina Co Ltd | Dongguan Chitwing vs. China State Construction | Dongguan Chitwing vs. China Railway Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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