Correlation Between Shenzhen Transsion and Xinjiang Tianshun
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Shenzhen Transsion and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and Xinjiang Tianshun.
Diversification Opportunities for Shenzhen Transsion and Xinjiang Tianshun
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Xinjiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Shenzhen Transsion i.e., Shenzhen Transsion and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and Xinjiang Tianshun
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to under-perform the Xinjiang Tianshun. In addition to that, Shenzhen Transsion is 1.39 times more volatile than Xinjiang Tianshun Supply. It trades about -0.03 of its total potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.29 per unit of volatility. If you would invest 1,145 in Xinjiang Tianshun Supply on September 5, 2024 and sell it today you would earn a total of 195.00 from holding Xinjiang Tianshun Supply or generate 17.03% 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. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Shenzhen Transsion |
| Xinjiang Tianshun Supply |
Shenzhen Transsion and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and Xinjiang Tianshun
The main advantage of trading using opposite Shenzhen Transsion and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Shenzhen Transsion vs. Eastroc Beverage Group | Shenzhen Transsion vs. Xiamen Jihong Package | Shenzhen Transsion vs. Sinofibers Technology Co | Shenzhen Transsion vs. Northking Information Technology |
| Xinjiang Tianshun vs. Innovative Medical Management | Xinjiang Tianshun vs. Sino Platinum Metals Co | Xinjiang Tianshun vs. Tibet Huayu Mining | Xinjiang Tianshun vs. Huaxia Fund Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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