Correlation Between Beijing Roborock and Shenzhen Transsion
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By analyzing existing cross correlation between Beijing Roborock Technology and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Beijing Roborock and Shenzhen Transsion 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 Beijing Roborock with a short position of Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Shenzhen Transsion.
Diversification Opportunities for Beijing Roborock and Shenzhen Transsion
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Shenzhen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion and Beijing Roborock 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 Beijing Roborock Technology are associated (or correlated) with Shenzhen Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Beijing Roborock and Shenzhen Transsion
Assuming the 90 days trading horizon Beijing Roborock is expected to generate 1.18 times less return on investment than Shenzhen Transsion. But when comparing it to its historical volatility, Beijing Roborock Technology is 1.05 times less risky than Shenzhen Transsion. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Transsion Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,079 in Shenzhen Transsion Holdings on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Shenzhen Transsion Holdings or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| Beijing Roborock Tec |
| Shenzhen Transsion |
Beijing Roborock and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Shenzhen Transsion
The main advantage of trading using opposite Beijing Roborock and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Shenzhen Transsion 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 Transsion will offset losses from the drop in Shenzhen Transsion's long position.| Beijing Roborock vs. Dezhan HealthCare Co | Beijing Roborock vs. Holitech Technology Co | Beijing Roborock vs. Hangzhou Coco Healthcare | Beijing Roborock vs. PKU HealthCare Corp |
| Shenzhen Transsion vs. Guangzhou Automobile Group | Shenzhen Transsion vs. Huasi Agricultural Development | Shenzhen Transsion vs. Sinomach General Machinery | Shenzhen Transsion vs. Lutian Machinery Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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