Correlation Between Shanghai Shuixing and Guangdong Transtek
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Shuixing Home and Guangdong Transtek Medical, you can compare the effects of market volatilities on Shanghai Shuixing and Guangdong Transtek 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 Shanghai Shuixing with a short position of Guangdong Transtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Guangdong Transtek.
Diversification Opportunities for Shanghai Shuixing and Guangdong Transtek
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Guangdong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Guangdong Transtek Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Transtek and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with Guangdong Transtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Transtek has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and Guangdong Transtek go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Guangdong Transtek
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 2.12 times less return on investment than Guangdong Transtek. But when comparing it to its historical volatility, Shanghai Shuixing Home is 1.83 times less risky than Guangdong Transtek. It trades about 0.03 of its potential returns per unit of risk. Guangdong Transtek Medical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 973.00 in Guangdong Transtek Medical on October 13, 2024 and sell it today you would earn a total of 243.00 from holding Guangdong Transtek Medical or generate 24.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Guangdong Transtek Medical
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Guangdong Transtek |
Shanghai Shuixing and Guangdong Transtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Guangdong Transtek
The main advantage of trading using opposite Shanghai Shuixing and Guangdong Transtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, Guangdong Transtek 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 Guangdong Transtek will offset losses from the drop in Guangdong Transtek's long position.| Shanghai Shuixing vs. Qijing Machinery | Shanghai Shuixing vs. Jiugui Liquor Co | Shanghai Shuixing vs. Long Yuan Construction | Shanghai Shuixing vs. Songz Automobile Air |
| Guangdong Transtek vs. Maxvision Technology Corp | Guangdong Transtek vs. Fiberhome Telecommunication Technologies | Guangdong Transtek vs. DO Home Collection | Guangdong Transtek vs. Shanghai Shuixing Home |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |