Correlation Between Allwin Telecommunicatio and Chenzhou Jingui
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By analyzing existing cross correlation between Allwin Telecommunication Co and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Allwin Telecommunicatio and Chenzhou Jingui 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 Allwin Telecommunicatio with a short position of Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Chenzhou Jingui.
Diversification Opportunities for Allwin Telecommunicatio and Chenzhou Jingui
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allwin and Chenzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver and Allwin Telecommunicatio 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 Allwin Telecommunication Co are associated (or correlated) with Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Chenzhou Jingui
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 1.3 times more return on investment than Chenzhou Jingui. However, Allwin Telecommunicatio is 1.3 times more volatile than Chenzhou Jingui Silver. It trades about 0.18 of its potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.17 per unit of risk. If you would invest 524.00 in Allwin Telecommunication Co on December 11, 2024 and sell it today you would earn a total of 77.00 from holding Allwin Telecommunication Co or generate 14.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Allwin Telecommunication Co vs. Chenzhou Jingui Silver
Performance |
Timeline |
Allwin Telecommunicatio |
Chenzhou Jingui Silver |
Allwin Telecommunicatio and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allwin Telecommunicatio and Chenzhou Jingui
The main advantage of trading using opposite Allwin Telecommunicatio and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.Allwin Telecommunicatio vs. Jinhui Liquor Co | Allwin Telecommunicatio vs. Jointo Energy Investment | Allwin Telecommunicatio vs. Jiangsu Yueda Investment | Allwin Telecommunicatio vs. Xiandai Investment Co |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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