Correlation Between Shenzhen Bingchuan and Tongding Interconnection
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Bingchuan Network and Tongding Interconnection Information, you can compare the effects of market volatilities on Shenzhen Bingchuan and Tongding Interconnection 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 Bingchuan with a short position of Tongding Interconnection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Tongding Interconnection.
Diversification Opportunities for Shenzhen Bingchuan and Tongding Interconnection
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Tongding is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Tongding Interconnection Infor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongding Interconnection and Shenzhen Bingchuan 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 Bingchuan Network are associated (or correlated) with Tongding Interconnection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongding Interconnection has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Tongding Interconnection go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Tongding Interconnection
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.73 times more return on investment than Tongding Interconnection. However, Shenzhen Bingchuan is 1.73 times more volatile than Tongding Interconnection Information. It trades about 0.24 of its potential returns per unit of risk. Tongding Interconnection Information is currently generating about 0.08 per unit of risk. If you would invest 1,923 in Shenzhen Bingchuan Network on August 28, 2024 and sell it today you would earn a total of 477.00 from holding Shenzhen Bingchuan Network or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Tongding Interconnection Infor
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Tongding Interconnection |
Shenzhen Bingchuan and Tongding Interconnection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Tongding Interconnection
The main advantage of trading using opposite Shenzhen Bingchuan and Tongding Interconnection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Tongding Interconnection 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 Tongding Interconnection will offset losses from the drop in Tongding Interconnection's long position.| Shenzhen Bingchuan vs. Shandong Homey Aquatic | Shenzhen Bingchuan vs. Tsingtao Brewery Co | Shenzhen Bingchuan vs. Eastroc Beverage Group | Shenzhen Bingchuan vs. Guangzhou Zhujiang Brewery |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |