Correlation Between Tederic Machinery and Anhui Shiny
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By analyzing existing cross correlation between Tederic Machinery Co and Anhui Shiny Electronic, you can compare the effects of market volatilities on Tederic Machinery and Anhui Shiny 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 Tederic Machinery with a short position of Anhui Shiny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tederic Machinery and Anhui Shiny.
Diversification Opportunities for Tederic Machinery and Anhui Shiny
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tederic and Anhui is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tederic Machinery Co and Anhui Shiny Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Shiny Electronic and Tederic Machinery 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 Tederic Machinery Co are associated (or correlated) with Anhui Shiny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Shiny Electronic has no effect on the direction of Tederic Machinery i.e., Tederic Machinery and Anhui Shiny go up and down completely randomly.
Pair Corralation between Tederic Machinery and Anhui Shiny
Assuming the 90 days trading horizon Tederic Machinery Co is expected to under-perform the Anhui Shiny. But the stock apears to be less risky and, when comparing its historical volatility, Tederic Machinery Co is 1.75 times less risky than Anhui Shiny. The stock trades about -0.01 of its potential returns per unit of risk. The Anhui Shiny Electronic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,543 in Anhui Shiny Electronic on November 6, 2024 and sell it today you would earn a total of 541.00 from holding Anhui Shiny Electronic or generate 35.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tederic Machinery Co vs. Anhui Shiny Electronic
Performance |
| Timeline |
| Tederic Machinery |
| Anhui Shiny Electronic |
Tederic Machinery and Anhui Shiny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tederic Machinery and Anhui Shiny
The main advantage of trading using opposite Tederic Machinery and Anhui Shiny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tederic Machinery position performs unexpectedly, Anhui Shiny 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 Shiny will offset losses from the drop in Anhui Shiny's long position.| Tederic Machinery vs. Bank of Communications | Tederic Machinery vs. Bohai Leasing Co | Tederic Machinery vs. Sinomach Automobile Co | Tederic Machinery vs. Runjian Communication Co |
| Anhui Shiny vs. Chengtun Mining Group | Anhui Shiny vs. Guangzhou Haozhi Industrial | Anhui Shiny vs. Zhejiang Zhengguang Industrial | Anhui Shiny vs. Xinhua Winshare Publishing |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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