Correlation Between Techshine Electronics and Anhui Huaheng
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By analyzing existing cross correlation between Techshine Electronics Co and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Techshine Electronics and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Anhui Huaheng.
Diversification Opportunities for Techshine Electronics and Anhui Huaheng
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Techshine and Anhui is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Techshine Electronics and Anhui Huaheng
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 1.27 times more return on investment than Anhui Huaheng. However, Techshine Electronics is 1.27 times more volatile than Anhui Huaheng Biotechnology. It trades about 0.1 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.2 per unit of risk. If you would invest 2,026 in Techshine Electronics Co on September 30, 2024 and sell it today you would earn a total of 99.00 from holding Techshine Electronics Co or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techshine Electronics Co vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Techshine Electronics |
| Anhui Huaheng Biotec |
Techshine Electronics and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techshine Electronics and Anhui Huaheng
The main advantage of trading using opposite Techshine Electronics and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Techshine Electronics vs. Industrial and Commercial | Techshine Electronics vs. China Construction Bank | Techshine Electronics vs. Agricultural Bank of | Techshine Electronics vs. Bank of China |
| Anhui Huaheng vs. Industrial and Commercial | Anhui Huaheng vs. Agricultural Bank of | Anhui Huaheng vs. China Construction Bank | Anhui Huaheng vs. Bank of China |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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