Correlation Between Shenzhen Bingchuan and TS Communications
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and TS Communications Co, you can compare the effects of market volatilities on Shenzhen Bingchuan and TS Communications 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 TS Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and TS Communications.
Diversification Opportunities for Shenzhen Bingchuan and TS Communications
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and 300570 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and TS Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Communications 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 TS Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Communications has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and TS Communications go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and TS Communications
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.03 times more return on investment than TS Communications. However, Shenzhen Bingchuan is 1.03 times more volatile than TS Communications Co. It trades about 0.24 of its potential returns per unit of risk. TS Communications Co is currently generating about -0.07 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. TS Communications Co
Performance |
| Timeline |
| Shenzhen Bingchuan |
| TS Communications |
Shenzhen Bingchuan and TS Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and TS Communications
The main advantage of trading using opposite Shenzhen Bingchuan and TS Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, TS Communications 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 TS Communications will offset losses from the drop in TS Communications' 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 |
| TS Communications vs. Shenzhen MYS Environmental | TS Communications vs. AVIC Fund Management | TS Communications vs. Shenzhen Bingchuan Network | TS Communications vs. Penghua Shenzhen Energy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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