Correlation Between Shenzhen Topway and Senci Electric

Can any of the company-specific risk be diversified away by investing in both Shenzhen Topway and Senci Electric at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shenzhen Topway and Senci Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shenzhen Topway Video and Senci Electric Machinery, you can compare the effects of market volatilities on Shenzhen Topway and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Senci Electric.

Diversification Opportunities for Shenzhen Topway and Senci Electric

0.0

Correlation Coefficient

Shenzhen Topway  Senci Electric

Pay attention - limited upside

The 3 months correlation between Shenzhen and Senci is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Shenzhen Topway i.e., Shenzhen Topway and Senci Electric go up and down completely randomly.

Pair Corralation between Shenzhen Topway and Senci Electric

If you would invest  0.00  in Senci Electric Machinery on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Senci Electric Machinery or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.33%
Values	Daily Returns

Shenzhen Topway Video  vs.  Senci Electric Machinery

Shenzhen Topway Video

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shenzhen Topway Video has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Senci Electric Machinery

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Senci Electric Machinery has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Senci Electric is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Shenzhen Topway and Senci Electric

The main advantage of trading using opposite Shenzhen Topway and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric's long position.

The idea behind Shenzhen Topway Video and Senci Electric Machinery pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.