Correlation Between Shenzhen Transsion and Titan Wind
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and Titan Wind Energy, you can compare the effects of market volatilities on Shenzhen Transsion and Titan Wind 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 Titan Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and Titan Wind.
Diversification Opportunities for Shenzhen Transsion and Titan Wind
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Titan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and Titan Wind Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Wind Energy 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 Titan Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Wind Energy has no effect on the direction of Shenzhen Transsion i.e., Shenzhen Transsion and Titan Wind go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and Titan Wind
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to generate 1.25 times more return on investment than Titan Wind. However, Shenzhen Transsion is 1.25 times more volatile than Titan Wind Energy. It trades about 0.05 of its potential returns per unit of risk. Titan Wind Energy is currently generating about 0.03 per unit of risk. If you would invest 8,217 in Shenzhen Transsion Holdings on December 4, 2024 and sell it today you would earn a total of 1,248 from holding Shenzhen Transsion Holdings or generate 15.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. Titan Wind Energy
Performance |
| Timeline |
| Shenzhen Transsion |
| Titan Wind Energy |
Shenzhen Transsion and Titan Wind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and Titan Wind
The main advantage of trading using opposite Shenzhen Transsion and Titan Wind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion position performs unexpectedly, Titan Wind 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 Titan Wind will offset losses from the drop in Titan Wind's long position.| Shenzhen Transsion vs. Beijing Balance Medical | Shenzhen Transsion vs. UE Furniture Co | Shenzhen Transsion vs. Winner Medical Co | Shenzhen Transsion vs. Suofeiya Home Collection |
| Titan Wind vs. Holitech Technology Co | Titan Wind vs. Gome Telecom Equipment | Titan Wind vs. Cultural Investment Holdings | Titan Wind vs. Danhua Chemical Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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