Correlation Between 5I5j Holding and Shijiazhuang Tonhe
Specify exactly 2 symbols:
By analyzing existing cross correlation between 5I5j Holding Group and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on 5I5j Holding and Shijiazhuang Tonhe 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 5I5j Holding with a short position of Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Shijiazhuang Tonhe.
Diversification Opportunities for 5I5j Holding and Shijiazhuang Tonhe
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 5I5j and Shijiazhuang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe and 5I5j Holding 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 5I5j Holding Group are associated (or correlated) with Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of 5I5j Holding i.e., 5I5j Holding and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between 5I5j Holding and Shijiazhuang Tonhe
Assuming the 90 days trading horizon 5I5j Holding Group is expected to under-perform the Shijiazhuang Tonhe. In addition to that, 5I5j Holding is 1.38 times more volatile than Shijiazhuang Tonhe Electronics. It trades about -0.02 of its total potential returns per unit of risk. Shijiazhuang Tonhe Electronics is currently generating about 0.18 per unit of volatility. If you would invest 1,676 in Shijiazhuang Tonhe Electronics on September 24, 2024 and sell it today you would earn a total of 138.00 from holding Shijiazhuang Tonhe Electronics or generate 8.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
5I5j Holding Group vs. Shijiazhuang Tonhe Electronics
Performance |
Timeline |
5I5j Holding Group |
Shijiazhuang Tonhe |
5I5j Holding and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 5I5j Holding and Shijiazhuang Tonhe
The main advantage of trading using opposite 5I5j Holding and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe's long position.5I5j Holding vs. Guangdong Shenglu Telecommunication | 5I5j Holding vs. Allwin Telecommunication Co | 5I5j Holding vs. Jonjee Hi tech Industrial | 5I5j Holding vs. Wintao Communications Co |
Shijiazhuang Tonhe vs. PetroChina Co Ltd | Shijiazhuang Tonhe vs. China Mobile Limited | Shijiazhuang Tonhe vs. CNOOC Limited | Shijiazhuang Tonhe vs. Ping An Insurance |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |