Correlation Between SSAW Hotels and Techshine Electronics
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By analyzing existing cross correlation between SSAW Hotels Resorts and Techshine Electronics Co, you can compare the effects of market volatilities on SSAW Hotels and Techshine Electronics 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 SSAW Hotels with a short position of Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Techshine Electronics.
Diversification Opportunities for SSAW Hotels and Techshine Electronics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSAW and Techshine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics and SSAW Hotels 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 SSAW Hotels Resorts are associated (or correlated) with Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of SSAW Hotels i.e., SSAW Hotels and Techshine Electronics go up and down completely randomly.
Pair Corralation between SSAW Hotels and Techshine Electronics
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to under-perform the Techshine Electronics. In addition to that, SSAW Hotels is 1.32 times more volatile than Techshine Electronics Co. It trades about -0.08 of its total potential returns per unit of risk. Techshine Electronics Co is currently generating about 0.03 per unit of volatility. If you would invest 2,046 in Techshine Electronics Co on October 20, 2024 and sell it today you would earn a total of 47.00 from holding Techshine Electronics Co or generate 2.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SSAW Hotels Resorts vs. Techshine Electronics Co
Performance |
Timeline |
SSAW Hotels Resorts |
Techshine Electronics |
SSAW Hotels and Techshine Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSAW Hotels and Techshine Electronics
The main advantage of trading using opposite SSAW Hotels and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.SSAW Hotels vs. Shuhua Sports 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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