Correlation Between Shenzhen Topway and Tonghua Grape
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By analyzing existing cross correlation between Shenzhen Topway Video and Tonghua Grape Wine, you can compare the effects of market volatilities on Shenzhen Topway and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Tonghua Grape.
Diversification Opportunities for Shenzhen Topway and Tonghua Grape
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Tonghua is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Tonghua Grape go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Tonghua Grape
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to generate 1.49 times more return on investment than Tonghua Grape. However, Shenzhen Topway is 1.49 times more volatile than Tonghua Grape Wine. It trades about 0.01 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 per unit of risk. If you would invest 786.00 in Shenzhen Topway Video on October 14, 2024 and sell it today you would lose (64.00) from holding Shenzhen Topway Video or give up 8.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Tonghua Grape Wine
Performance |
| Timeline |
| Shenzhen Topway Video |
| Tonghua Grape Wine |
Shenzhen Topway and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Tonghua Grape
The main advantage of trading using opposite Shenzhen Topway and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Shenzhen Topway vs. SSAW Hotels Resorts | Shenzhen Topway vs. Leyard Optoelectronic | Shenzhen Topway vs. Masterwork Machinery | Shenzhen Topway vs. Huasi Agricultural Development |
| Tonghua Grape vs. China Mobile Limited | Tonghua Grape vs. XinJiang GuoTong Pipeline | Tonghua Grape vs. Zhejiang Kingland Pipeline | Tonghua Grape vs. Shenzhen Topway Video |
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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