Correlation Between Shenzhen and Allwin Telecommunicatio
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By analyzing existing cross correlation between Shenzhen AV Display Co and Allwin Telecommunication Co, you can compare the effects of market volatilities on Shenzhen and Allwin Telecommunicatio 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 with a short position of Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Allwin Telecommunicatio.
Diversification Opportunities for Shenzhen and Allwin Telecommunicatio
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Allwin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio and Shenzhen 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 AV Display Co are associated (or correlated) with Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Shenzhen i.e., Shenzhen and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Shenzhen and Allwin Telecommunicatio
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the Allwin Telecommunicatio. In addition to that, Shenzhen is 1.08 times more volatile than Allwin Telecommunication Co. It trades about -0.17 of its total potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.09 per unit of volatility. If you would invest 566.00 in Allwin Telecommunication Co on October 29, 2024 and sell it today you would lose (34.00) from holding Allwin Telecommunication Co or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Shenzhen AV Display |
| Allwin Telecommunicatio |
Shenzhen and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Allwin Telecommunicatio
The main advantage of trading using opposite Shenzhen and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Shenzhen vs. Railway Signal Communication | Shenzhen vs. Duzhe Publishing Media | Shenzhen vs. SSAW Hotels Resorts | Shenzhen vs. China Publishing Media |
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 Stocks Directory module to find actively traded stocks across global markets.
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