Correlation Between Techshine Electronics and Henan Lantian
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By analyzing existing cross correlation between Techshine Electronics Co and Henan Lantian Gas, you can compare the effects of market volatilities on Techshine Electronics and Henan Lantian 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 Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Henan Lantian.
Diversification Opportunities for Techshine Electronics and Henan Lantian
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Techshine and Henan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas 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 Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and Henan Lantian go up and down completely randomly.
Pair Corralation between Techshine Electronics and Henan Lantian
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 1.84 times more return on investment than Henan Lantian. However, Techshine Electronics is 1.84 times more volatile than Henan Lantian Gas. It trades about 0.01 of its potential returns per unit of risk. Henan Lantian Gas is currently generating about -0.15 per unit of risk. If you would invest 2,066 in Techshine Electronics Co on September 4, 2024 and sell it today you would earn a total of 3.00 from holding Techshine Electronics Co or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techshine Electronics Co vs. Henan Lantian Gas
Performance |
| Timeline |
| Techshine Electronics |
| Henan Lantian Gas |
Techshine Electronics and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techshine Electronics and Henan Lantian
The main advantage of trading using opposite Techshine Electronics and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's long position.| Techshine Electronics vs. PetroChina Co Ltd | Techshine Electronics vs. China Mobile Limited | Techshine Electronics vs. CNOOC Limited | Techshine Electronics vs. Ping An Insurance |
| Henan Lantian vs. Agricultural Bank of | Henan Lantian vs. Industrial and Commercial | Henan Lantian vs. Bank of China | Henan Lantian vs. China Construction Bank |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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