Correlation Between Shantou Wanshun and Dongguan Tarry
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By analyzing existing cross correlation between Shantou Wanshun Package and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Shantou Wanshun and Dongguan Tarry 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 Shantou Wanshun with a short position of Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Dongguan Tarry.
Diversification Opportunities for Shantou Wanshun and Dongguan Tarry
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shantou and Dongguan is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Dongguan Tarry
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to under-perform the Dongguan Tarry. But the stock apears to be less risky and, when comparing its historical volatility, Shantou Wanshun Package is 1.37 times less risky than Dongguan Tarry. The stock trades about -0.22 of its potential returns per unit of risk. The Dongguan Tarry Electronics is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 7,418 in Dongguan Tarry Electronics on October 30, 2024 and sell it today you would lose (515.00) from holding Dongguan Tarry Electronics or give up 6.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shantou Wanshun Package vs. Dongguan Tarry Electronics
Performance |
Timeline |
Shantou Wanshun Package |
Dongguan Tarry Elect |
Shantou Wanshun and Dongguan Tarry Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shantou Wanshun and Dongguan Tarry
The main advantage of trading using opposite Shantou Wanshun and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Dongguan Tarry 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 Tarry will offset losses from the drop in Dongguan Tarry's long position.Shantou Wanshun vs. Nanxing Furniture Machinery | Shantou Wanshun vs. Xiwang Foodstuffs Co | Shantou Wanshun vs. Ziel Home Furnishing | Shantou Wanshun vs. Hunan Mendale Hometextile |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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