Correlation Between Techshine Electronics and China Construction
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By analyzing existing cross correlation between Techshine Electronics Co and China Construction Bank, you can compare the effects of market volatilities on Techshine Electronics and China Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and China Construction.
Diversification Opportunities for Techshine Electronics and China Construction
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Techshine and China is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and China Construction go up and down completely randomly.
Pair Corralation between Techshine Electronics and China Construction
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 2.21 times more return on investment than China Construction. However, Techshine Electronics is 2.21 times more volatile than China Construction Bank. It trades about 0.12 of its potential returns per unit of risk. China Construction Bank is currently generating about 0.1 per unit of risk. If you would invest 1,638 in Techshine Electronics Co on September 3, 2024 and sell it today you would earn a total of 388.00 from holding Techshine Electronics Co or generate 23.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techshine Electronics Co vs. China Construction Bank
Performance |
| Timeline |
| Techshine Electronics |
| China Construction Bank |
Techshine Electronics and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techshine Electronics and China Construction
The main advantage of trading using opposite Techshine Electronics and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, China Construction 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 Construction will offset losses from the drop in China Construction's long position.| Techshine Electronics vs. Agricultural Bank of | Techshine Electronics vs. China Construction Bank | Techshine Electronics vs. Postal Savings Bank | Techshine Electronics vs. Bank of Communications |
| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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