Correlation Between Integrated Electronic and Shenzhen Centralcon
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By analyzing existing cross correlation between Integrated Electronic Systems and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Integrated Electronic and Shenzhen Centralcon 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 Integrated Electronic with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Shenzhen Centralcon.
Diversification Opportunities for Integrated Electronic and Shenzhen Centralcon
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integrated and Shenzhen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Integrated Electronic 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 Integrated Electronic Systems are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Integrated Electronic i.e., Integrated Electronic and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Integrated Electronic and Shenzhen Centralcon
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 1.06 times more return on investment than Shenzhen Centralcon. However, Integrated Electronic is 1.06 times more volatile than Shenzhen Centralcon Investment. It trades about 0.16 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.13 per unit of risk. If you would invest 609.00 in Integrated Electronic Systems on September 24, 2024 and sell it today you would earn a total of 241.00 from holding Integrated Electronic Systems or generate 39.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
Integrated Electronic Systems vs. Shenzhen Centralcon Investment
Performance |
Timeline |
Integrated Electronic |
Shenzhen Centralcon |
Integrated Electronic and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Integrated Electronic and Shenzhen Centralcon
The main advantage of trading using opposite Integrated Electronic and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.Integrated Electronic vs. Kweichow Moutai Co | Integrated Electronic vs. Contemporary Amperex Technology | Integrated Electronic vs. G bits Network Technology | Integrated Electronic vs. BYD Co Ltd |
Shenzhen Centralcon vs. Xinya Electronic Co | Shenzhen Centralcon vs. Shenzhen Clou Electronics | Shenzhen Centralcon vs. Sanbo Hospital Management | Shenzhen Centralcon vs. Integrated Electronic Systems |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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