Correlation Between Shenzhen Topway and Shanghai Newtouch
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Topway Video and Shanghai Newtouch Software, you can compare the effects of market volatilities on Shenzhen Topway and Shanghai Newtouch 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 Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Shanghai Newtouch.
Diversification Opportunities for Shenzhen Topway and Shanghai Newtouch
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shanghai is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Shanghai Newtouch
Assuming the 90 days trading horizon Shenzhen Topway is expected to generate 3.26 times less return on investment than Shanghai Newtouch. But when comparing it to its historical volatility, Shenzhen Topway Video is 1.23 times less risky than Shanghai Newtouch. It trades about 0.01 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,071 in Shanghai Newtouch Software on October 16, 2024 and sell it today you would earn a total of 329.00 from holding Shanghai Newtouch Software or generate 30.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Shenzhen Topway Video |
| Shanghai Newtouch |
Shenzhen Topway and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Shanghai Newtouch
The main advantage of trading using opposite Shenzhen Topway and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Shanghai Newtouch 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 Shanghai Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Shenzhen Topway vs. Hefei Metalforming Mach | Shenzhen Topway vs. China Everbright Bank | Shenzhen Topway vs. Hua Xia Bank | Shenzhen Topway vs. Hainan Mining Co |
| Shanghai Newtouch vs. China World Trade | Shanghai Newtouch vs. Anyang Iron Steel | Shanghai Newtouch vs. Grandblue Environment Co | Shanghai Newtouch vs. Zhengzhou Qianweiyangchu Food |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |