Correlation Between Guangxi Wuzhou and Techshine Electronics
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Techshine Electronics Co, you can compare the effects of market volatilities on Guangxi Wuzhou and Techshine Electronics 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 Guangxi Wuzhou with a short position of Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Techshine Electronics.
Diversification Opportunities for Guangxi Wuzhou and Techshine Electronics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangxi and Techshine is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics and Guangxi Wuzhou 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 Guangxi Wuzhou Communications are associated (or correlated) with Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Techshine Electronics go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Techshine Electronics
Assuming the 90 days trading horizon Guangxi Wuzhou is expected to generate 4.16 times less return on investment than Techshine Electronics. But when comparing it to its historical volatility, Guangxi Wuzhou Communications is 1.02 times less risky than Techshine Electronics. It trades about 0.02 of its potential returns per unit of risk. Techshine Electronics Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,486 in Techshine Electronics Co on October 12, 2024 and sell it today you would earn a total of 475.00 from holding Techshine Electronics Co or generate 31.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Techshine Electronics Co
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Techshine Electronics |
Guangxi Wuzhou and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Techshine Electronics
The main advantage of trading using opposite Guangxi Wuzhou and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Guangxi Wuzhou vs. Telling Telecommunication Holding | Guangxi Wuzhou vs. Fujian Oriental Silver | Guangxi Wuzhou vs. Quectel Wireless Solutions | Guangxi Wuzhou vs. Allwin Telecommunication 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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