Correlation Between Shenzhen Topway and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Shenzhen Topway Video and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Shenzhen Topway and Beijing HuaYuanYiTong 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 Shenzhen Topway with a short position of Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Beijing HuaYuanYiTong.
Diversification Opportunities for Shenzhen Topway and Beijing HuaYuanYiTong
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong and Shenzhen Topway 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 Shenzhen Topway Video are associated (or correlated) with Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to under-perform the Beijing HuaYuanYiTong. In addition to that, Shenzhen Topway is 1.03 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about -0.04 of its total potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.01 per unit of volatility. If you would invest 1,105 in Beijing HuaYuanYiTong Thermal on September 25, 2024 and sell it today you would lose (48.00) from holding Beijing HuaYuanYiTong Thermal or give up 4.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Topway Video vs. Beijing HuaYuanYiTong Thermal
Performance |
Timeline |
Shenzhen Topway Video |
Beijing HuaYuanYiTong |
Shenzhen Topway and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Topway and Beijing HuaYuanYiTong
The main advantage of trading using opposite Shenzhen Topway and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.Shenzhen Topway vs. Industrial and Commercial | Shenzhen Topway vs. Kweichow Moutai Co | Shenzhen Topway vs. Agricultural Bank of | Shenzhen Topway vs. China Mobile Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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