Correlation Between Techshine Electronics and China Galaxy
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By analyzing existing cross correlation between Techshine Electronics Co and China Galaxy Securities, you can compare the effects of market volatilities on Techshine Electronics and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and China Galaxy.
Diversification Opportunities for Techshine Electronics and China Galaxy
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Techshine and China is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and China Galaxy go up and down completely randomly.
Pair Corralation between Techshine Electronics and China Galaxy
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 1.5 times more return on investment than China Galaxy. However, Techshine Electronics is 1.5 times more volatile than China Galaxy Securities. It trades about -0.08 of its potential returns per unit of risk. China Galaxy Securities is currently generating about -0.18 per unit of risk. If you would invest 2,160 in Techshine Electronics Co on October 17, 2024 and sell it today you would lose (145.00) from holding Techshine Electronics Co or give up 6.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techshine Electronics Co vs. China Galaxy Securities
Performance |
| Timeline |
| Techshine Electronics |
| China Galaxy Securities |
Techshine Electronics and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techshine Electronics and China Galaxy
The main advantage of trading using opposite Techshine Electronics and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.| Techshine Electronics vs. Pengxin International Mining | Techshine Electronics vs. Tianjin Silvery Dragon | Techshine Electronics vs. Chengtun Mining Group | Techshine Electronics vs. Western Metal Materials |
| China Galaxy vs. Jinlong Machinery Electronic | China Galaxy vs. Iat Automobile Technology | China Galaxy vs. Huasi Agricultural Development | China Galaxy vs. Masterwork Machinery |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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