Correlation Between Hunan Tyen and Shenzhen Topway
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By analyzing existing cross correlation between Hunan Tyen Machinery and Shenzhen Topway Video, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Shenzhen Topway.
Diversification Opportunities for Hunan Tyen and Shenzhen Topway
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery 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 Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Hunan Tyen and Shenzhen Topway
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 1.31 times more return on investment than Shenzhen Topway. However, Hunan Tyen is 1.31 times more volatile than Shenzhen Topway Video. It trades about -0.07 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 550.00 in Hunan Tyen Machinery on October 11, 2024 and sell it today you would lose (43.00) from holding Hunan Tyen Machinery or give up 7.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Shenzhen Topway Video
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Shenzhen Topway Video |
Hunan Tyen and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Shenzhen Topway
The main advantage of trading using opposite Hunan Tyen and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank Co |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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