Correlation Between Shenzhen Topway and China Asset
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By analyzing existing cross correlation between Shenzhen Topway Video and China Asset Management, you can compare the effects of market volatilities on Shenzhen Topway and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and China Asset.
Diversification Opportunities for Shenzhen Topway and China Asset
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and China is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and China Asset go up and down completely randomly.
Pair Corralation between Shenzhen Topway and China Asset
Assuming the 90 days trading horizon Shenzhen Topway is expected to generate 1.29 times less return on investment than China Asset. In addition to that, Shenzhen Topway is 1.98 times more volatile than China Asset Management. It trades about 0.14 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.36 per unit of volatility. If you would invest 370.00 in China Asset Management on November 7, 2024 and sell it today you would earn a total of 26.00 from holding China Asset Management or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. China Asset Management
Performance |
| Timeline |
| Shenzhen Topway Video |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Asset Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Shenzhen Topway and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and China Asset
The main advantage of trading using opposite Shenzhen Topway and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.The idea behind Shenzhen Topway Video and China Asset Management 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.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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