Correlation Between Shenzhen Changfang and Taiji Computer
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By analyzing existing cross correlation between Shenzhen Changfang Light and Taiji Computer Corp, you can compare the effects of market volatilities on Shenzhen Changfang and Taiji Computer 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 Changfang with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Changfang and Taiji Computer.
Diversification Opportunities for Shenzhen Changfang and Taiji Computer
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Taiji is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Changfang Light and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and Shenzhen Changfang 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 Changfang Light are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Shenzhen Changfang i.e., Shenzhen Changfang and Taiji Computer go up and down completely randomly.
Pair Corralation between Shenzhen Changfang and Taiji Computer
Assuming the 90 days trading horizon Shenzhen Changfang Light is expected to generate 1.57 times more return on investment than Taiji Computer. However, Shenzhen Changfang is 1.57 times more volatile than Taiji Computer Corp. It trades about -0.07 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.48 per unit of risk. If you would invest 193.00 in Shenzhen Changfang Light on October 13, 2024 and sell it today you would lose (13.00) from holding Shenzhen Changfang Light or give up 6.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Changfang Light vs. Taiji Computer Corp
Performance |
Timeline |
Shenzhen Changfang Light |
Taiji Computer Corp |
Shenzhen Changfang and Taiji Computer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Changfang and Taiji Computer
The main advantage of trading using opposite Shenzhen Changfang and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Changfang position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.Shenzhen Changfang vs. Humanwell Healthcare Group | Shenzhen Changfang vs. Lotus Health Group | Shenzhen Changfang vs. Healthcare Co | Shenzhen Changfang vs. Ligao Foods CoLtd |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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