Correlation Between Shanghai Newtouch and Invengo Information
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By analyzing existing cross correlation between Shanghai Newtouch Software and Invengo Information Technology, you can compare the effects of market volatilities on Shanghai Newtouch and Invengo Information 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 Newtouch with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Invengo Information.
Diversification Opportunities for Shanghai Newtouch and Invengo Information
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Invengo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and Shanghai Newtouch 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 Newtouch Software are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Shanghai Newtouch i.e., Shanghai Newtouch and Invengo Information go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Invengo Information
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to generate 2.13 times more return on investment than Invengo Information. However, Shanghai Newtouch is 2.13 times more volatile than Invengo Information Technology. It trades about 0.18 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.03 per unit of risk. If you would invest 1,570 in Shanghai Newtouch Software on November 3, 2024 and sell it today you would earn a total of 281.00 from holding Shanghai Newtouch Software or generate 17.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Invengo Information Technology
Performance |
| Timeline |
| Shanghai Newtouch |
| Invengo Information |
Shanghai Newtouch and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Invengo Information
The main advantage of trading using opposite Shanghai Newtouch and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Shanghai Newtouch vs. Ping An Insurance | Shanghai Newtouch vs. HaiXin Foods Co | Shanghai Newtouch vs. Hua Xia Bank | Shanghai Newtouch vs. Suzhou Weizhixiang Food |
| Invengo Information vs. Chengdu Xingrong Investment | Invengo Information vs. Hengli Industrial Development | Invengo Information vs. Hunan Investment Group | Invengo Information vs. Shanghai Material Trading |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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