Correlation Between Western Metal and Techshine Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Techshine Electronics Co, you can compare the effects of market volatilities on Western Metal and Techshine Electronics 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 Western Metal with a short position of Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Techshine Electronics.
Diversification Opportunities for Western Metal and Techshine Electronics
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Western and Techshine is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics and Western Metal 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 Western Metal Materials are associated (or correlated) with Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Western Metal i.e., Western Metal and Techshine Electronics go up and down completely randomly.
Pair Corralation between Western Metal and Techshine Electronics
Assuming the 90 days trading horizon Western Metal is expected to generate 1.2 times less return on investment than Techshine Electronics. But when comparing it to its historical volatility, Western Metal Materials is 1.19 times less risky than Techshine Electronics. It trades about 0.14 of its potential returns per unit of risk. Techshine Electronics Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,559 in Techshine Electronics Co on September 12, 2024 and sell it today you would earn a total of 481.00 from holding Techshine Electronics Co or generate 30.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Western Metal Materials vs. Techshine Electronics Co
Performance |
Timeline |
Western Metal Materials |
Techshine Electronics |
Western Metal and Techshine Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Metal and Techshine Electronics
The main advantage of trading using opposite Western Metal and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Rongsheng Petrochemical Co |
Techshine Electronics vs. Caihong Display Devices | Techshine Electronics vs. Chengdu Spaceon Electronics | Techshine Electronics vs. Chengtun Mining Group | Techshine Electronics vs. Shanghai Yaoji Playing |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
CEOs Directory Screen CEOs from public companies around the world | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |