Correlation Between Qingdao NovelBeam and Shenzhen Transsion
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By analyzing existing cross correlation between Qingdao NovelBeam Technology and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Qingdao NovelBeam 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 Qingdao NovelBeam with a short position of Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao NovelBeam and Shenzhen Transsion.
Diversification Opportunities for Qingdao NovelBeam and Shenzhen Transsion
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Shenzhen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao NovelBeam 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 Qingdao NovelBeam 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 Qingdao NovelBeam 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 Qingdao NovelBeam i.e., Qingdao NovelBeam and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Qingdao NovelBeam and Shenzhen Transsion
Assuming the 90 days trading horizon Qingdao NovelBeam Technology is expected to under-perform the Shenzhen Transsion. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao NovelBeam Technology is 1.33 times less risky than Shenzhen Transsion. The stock trades about -0.49 of its potential returns per unit of risk. The Shenzhen Transsion Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 10,039 in Shenzhen Transsion Holdings on November 27, 2024 and sell it today you would lose (100.00) from holding Shenzhen Transsion Holdings or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao NovelBeam Technology vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| Qingdao NovelBeam |
| Shenzhen Transsion |
Qingdao NovelBeam and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao NovelBeam and Shenzhen Transsion
The main advantage of trading using opposite Qingdao NovelBeam and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao NovelBeam 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.| Qingdao NovelBeam vs. Xian International Medical | Qingdao NovelBeam vs. Rising Nonferrous Metals | Qingdao NovelBeam vs. China World Trade | Qingdao NovelBeam vs. Hengkang Medical Group |
| Shenzhen Transsion vs. Tieling Newcity Investment | Shenzhen Transsion vs. Dr Peng Telecom | Shenzhen Transsion vs. China Satellite Communications | Shenzhen Transsion vs. Harbin Hatou Investment |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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