Correlation Between Liuzhou Chemical and Shenzhen Topway
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Shenzhen Topway Video, you can compare the effects of market volatilities on Liuzhou Chemical and Shenzhen Topway 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 Liuzhou Chemical with a short position of Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Shenzhen Topway.
Diversification Opportunities for Liuzhou Chemical and Shenzhen Topway
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Liuzhou and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video and Liuzhou Chemical 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 Liuzhou Chemical Industry are associated (or correlated) with Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Liuzhou Chemical i.e., Liuzhou Chemical and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Shenzhen Topway
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to generate 0.96 times more return on investment than Shenzhen Topway. However, Liuzhou Chemical Industry is 1.04 times less risky than Shenzhen Topway. It trades about -0.15 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.46 per unit of risk. If you would invest 324.00 in Liuzhou Chemical Industry on October 11, 2024 and sell it today you would lose (33.00) from holding Liuzhou Chemical Industry or give up 10.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Shenzhen Topway Video
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Shenzhen Topway Video |
Liuzhou Chemical and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Shenzhen Topway
The main advantage of trading using opposite Liuzhou Chemical and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| Liuzhou Chemical vs. AUPU Home Style | Liuzhou Chemical vs. Oppein Home Group | Liuzhou Chemical vs. Easyhome New Retail | Liuzhou Chemical vs. Ziel Home Furnishing |
| Shenzhen Topway vs. Liuzhou Chemical Industry | Shenzhen Topway vs. Hunan Tyen Machinery | Shenzhen Topway vs. China Life Insurance | Shenzhen Topway vs. Liaoning Dingjide Petrochemical |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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