Correlation Between Shijiazhuang Tonhe and China World
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By analyzing existing cross correlation between Shijiazhuang Tonhe Electronics and China World Trade, you can compare the effects of market volatilities on Shijiazhuang Tonhe and China World 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 Shijiazhuang Tonhe with a short position of China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shijiazhuang Tonhe and China World.
Diversification Opportunities for Shijiazhuang Tonhe and China World
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shijiazhuang and China is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shijiazhuang Tonhe Electronics and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe Electronics are associated (or correlated) with China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Shijiazhuang Tonhe i.e., Shijiazhuang Tonhe and China World go up and down completely randomly.
Pair Corralation between Shijiazhuang Tonhe and China World
Assuming the 90 days trading horizon Shijiazhuang Tonhe Electronics is expected to generate 4.57 times more return on investment than China World. However, Shijiazhuang Tonhe is 4.57 times more volatile than China World Trade. It trades about 0.09 of its potential returns per unit of risk. China World Trade is currently generating about 0.1 per unit of risk. If you would invest 1,717 in Shijiazhuang Tonhe Electronics on October 24, 2024 and sell it today you would earn a total of 130.00 from holding Shijiazhuang Tonhe Electronics or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shijiazhuang Tonhe Electronics vs. China World Trade
Performance |
| Timeline |
| Shijiazhuang Tonhe |
| China World Trade |
Shijiazhuang Tonhe and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shijiazhuang Tonhe and China World
The main advantage of trading using opposite Shijiazhuang Tonhe and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shijiazhuang Tonhe position performs unexpectedly, China World 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 World will offset losses from the drop in China World's long position.| Shijiazhuang Tonhe vs. PetroChina Co Ltd | Shijiazhuang Tonhe vs. Industrial and Commercial | Shijiazhuang Tonhe vs. China Petroleum Chemical | Shijiazhuang Tonhe vs. China Construction Bank |
| China World vs. Xinjiang Baodi Mining | China World vs. Hubeiyichang Transportation Group | China World vs. Guocheng Mining Co | China World vs. Shenyang Blue Silver |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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