Correlation Between Techshine Electronics and Chongqing Sulian
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By analyzing existing cross correlation between Techshine Electronics Co and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Techshine Electronics and Chongqing Sulian 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 Techshine Electronics with a short position of Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Chongqing Sulian.
Diversification Opportunities for Techshine Electronics and Chongqing Sulian
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Techshine and Chongqing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic and Techshine Electronics 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 Techshine Electronics Co are associated (or correlated) with Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Techshine Electronics and Chongqing Sulian
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 0.44 times more return on investment than Chongqing Sulian. However, Techshine Electronics Co is 2.28 times less risky than Chongqing Sulian. It trades about 0.6 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about 0.13 per unit of risk. If you would invest 2,134 in Techshine Electronics Co on November 25, 2024 and sell it today you would earn a total of 576.00 from holding Techshine Electronics Co or generate 26.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Techshine Electronics Co vs. Chongqing Sulian Plastic
Performance |
Timeline |
Techshine Electronics |
Chongqing Sulian Plastic |
Techshine Electronics and Chongqing Sulian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Techshine Electronics and Chongqing Sulian
The main advantage of trading using opposite Techshine Electronics and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.Techshine Electronics vs. Kunshan Guoli Electronic | ||
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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