Correlation Between Shenzhen Bingchuan and Datang Telecom
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Datang Telecom Technology, you can compare the effects of market volatilities on Shenzhen Bingchuan and Datang Telecom 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 Datang Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Datang Telecom.
Diversification Opportunities for Shenzhen Bingchuan and Datang Telecom
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Datang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Datang Telecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang Telecom Technology 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 Datang Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang Telecom Technology has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Datang Telecom go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Datang Telecom
Assuming the 90 days trading horizon Shenzhen Bingchuan is expected to generate 1.47 times less return on investment than Datang Telecom. But when comparing it to its historical volatility, Shenzhen Bingchuan Network is 1.09 times less risky than Datang Telecom. It trades about 0.1 of its potential returns per unit of risk. Datang Telecom Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 549.00 in Datang Telecom Technology on August 29, 2024 and sell it today you would earn a total of 482.00 from holding Datang Telecom Technology or generate 87.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Datang Telecom Technology
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Datang Telecom Technology |
Shenzhen Bingchuan and Datang Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Datang Telecom
The main advantage of trading using opposite Shenzhen Bingchuan and Datang Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Datang Telecom 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 Datang Telecom will offset losses from the drop in Datang Telecom's long position.| Shenzhen Bingchuan vs. GreenTech Environmental Co | Shenzhen Bingchuan vs. Ningbo MedicalSystem Biotechnology | Shenzhen Bingchuan vs. Hang Xiao Steel | Shenzhen Bingchuan vs. Guangdong Liantai Environmental |
| Datang Telecom vs. Shenzhen MYS Environmental | Datang Telecom vs. AVIC Fund Management | Datang Telecom vs. Shenzhen Bingchuan Network | Datang Telecom 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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