Correlation Between Shenzhen Topway and Chengdu Spaceon
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By analyzing existing cross correlation between Shenzhen Topway Video and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Shenzhen Topway and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Chengdu Spaceon.
Diversification Opportunities for Shenzhen Topway and Chengdu Spaceon
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Chengdu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Chengdu Spaceon
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to under-perform the Chengdu Spaceon. In addition to that, Shenzhen Topway is 1.17 times more volatile than Chengdu Spaceon Electronics. It trades about -0.03 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.04 per unit of volatility. If you would invest 1,522 in Chengdu Spaceon Electronics on September 14, 2024 and sell it today you would earn a total of 290.00 from holding Chengdu Spaceon Electronics or generate 19.05% 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. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Shenzhen Topway Video |
| Chengdu Spaceon Elec |
Shenzhen Topway and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Chengdu Spaceon
The main advantage of trading using opposite Shenzhen Topway and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Shenzhen Topway vs. Lutian Machinery Co | Shenzhen Topway vs. PetroChina Co Ltd | Shenzhen Topway vs. Bank of China | Shenzhen Topway vs. China Citic Bank |
| Chengdu Spaceon vs. Gem Year Industrial Co | Chengdu Spaceon vs. Huafa Industrial Co | Chengdu Spaceon vs. Jiangxi Selon Industrial | Chengdu Spaceon vs. Tongyu Communication |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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