Correlation Between Shenzhen Transsion and Andon Health
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and Andon Health Co, you can compare the effects of market volatilities on Shenzhen Transsion and Andon Health 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 Shenzhen Transsion with a short position of Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and Andon Health.
Diversification Opportunities for Shenzhen Transsion and Andon Health
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Andon is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health and Shenzhen Transsion 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 Shenzhen Transsion Holdings are associated (or correlated) with Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Shenzhen Transsion i.e., Shenzhen Transsion and Andon Health go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and Andon Health
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to under-perform the Andon Health. In addition to that, Shenzhen Transsion is 1.49 times more volatile than Andon Health Co. It trades about -0.01 of its total potential returns per unit of risk. Andon Health Co is currently generating about 0.04 per unit of volatility. If you would invest 3,629 in Andon Health Co on September 3, 2024 and sell it today you would earn a total of 731.00 from holding Andon Health Co or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. Andon Health Co
Performance |
| Timeline |
| Shenzhen Transsion |
| Andon Health |
Shenzhen Transsion and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and Andon Health
The main advantage of trading using opposite Shenzhen Transsion and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.| Shenzhen Transsion vs. Qumei Furniture Group | Shenzhen Transsion vs. Shuhua Sports Co | Shenzhen Transsion vs. Xilinmen Furniture Co | Shenzhen Transsion vs. Sportsoul Co Ltd |
| Andon Health vs. Chengdu Kanghua Biological | Andon Health vs. Beijing Wantai Biological | Andon Health vs. Suzhou Novoprotein Scientific | Andon Health vs. Aluminum Corp of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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