Correlation Between Sichuan Teway and Shenzhen
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By analyzing existing cross correlation between Sichuan Teway Food and Shenzhen AV Display Co, you can compare the effects of market volatilities on Sichuan Teway and Shenzhen 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 Sichuan Teway with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Shenzhen.
Diversification Opportunities for Sichuan Teway and Shenzhen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display and Sichuan Teway 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 Sichuan Teway Food are associated (or correlated) with Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Sichuan Teway i.e., Sichuan Teway and Shenzhen go up and down completely randomly.
Pair Corralation between Sichuan Teway and Shenzhen
Assuming the 90 days trading horizon Sichuan Teway Food is expected to under-perform the Shenzhen. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Teway Food is 1.25 times less risky than Shenzhen. The stock trades about -0.05 of its potential returns per unit of risk. The Shenzhen AV Display Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,040 in Shenzhen AV Display Co on September 4, 2024 and sell it today you would earn a total of 475.00 from holding Shenzhen AV Display Co or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Sichuan Teway Food |
| Shenzhen AV Display |
Sichuan Teway and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Shenzhen
The main advantage of trading using opposite Sichuan Teway and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| Sichuan Teway vs. Poly Real Estate | Sichuan Teway vs. China Vanke Co | Sichuan Teway vs. China Merchants Shekou | Sichuan Teway vs. Huafa Industrial Co |
| Shenzhen vs. V V Food | Shenzhen vs. Xiangyang Automobile Bearing | Shenzhen vs. Sichuan Teway Food | Shenzhen vs. Zhengzhou Qianweiyangchu Food |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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