Correlation Between Changshu Tianyin and Guangdong Wens
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By analyzing existing cross correlation between Changshu Tianyin Electromechan and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Changshu Tianyin and Guangdong Wens 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 Changshu Tianyin with a short position of Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tianyin and Guangdong Wens.
Diversification Opportunities for Changshu Tianyin and Guangdong Wens
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changshu and Guangdong is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tianyin Electromechan and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff and Changshu Tianyin 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 Changshu Tianyin Electromechan are associated (or correlated) with Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Changshu Tianyin i.e., Changshu Tianyin and Guangdong Wens go up and down completely randomly.
Pair Corralation between Changshu Tianyin and Guangdong Wens
Assuming the 90 days trading horizon Changshu Tianyin Electromechan is expected to generate 2.56 times more return on investment than Guangdong Wens. However, Changshu Tianyin is 2.56 times more volatile than Guangdong Wens Foodstuff. It trades about 0.05 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about 0.05 per unit of risk. If you would invest 1,689 in Changshu Tianyin Electromechan on December 1, 2024 and sell it today you would earn a total of 32.00 from holding Changshu Tianyin Electromechan or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Tianyin Electromechan vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Changshu Tianyin Ele |
| Guangdong Wens Foodstuff |
Changshu Tianyin and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tianyin and Guangdong Wens
The main advantage of trading using opposite Changshu Tianyin and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tianyin position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Changshu Tianyin vs. Kweichow Moutai Co | Changshu Tianyin vs. NAURA Technology Group | Changshu Tianyin vs. BYD Co Ltd | Changshu Tianyin vs. Zhejiang Orient Gene |
| Guangdong Wens vs. Everdisplay Optronics Shanghai | Guangdong Wens vs. Jiangsu Jinling Sports | Guangdong Wens vs. Lander Sports Development | Guangdong Wens vs. Shanghai Yaoji Playing |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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