Correlation Between Techshine Electronics and Shenzhen RoadRover
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By analyzing existing cross correlation between Techshine Electronics Co and Shenzhen RoadRover Technology, you can compare the effects of market volatilities on Techshine Electronics and Shenzhen RoadRover 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 Techshine Electronics with a short position of Shenzhen RoadRover. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Shenzhen RoadRover.
Diversification Opportunities for Techshine Electronics and Shenzhen RoadRover
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Techshine and Shenzhen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and Shenzhen RoadRover Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen RoadRover and Techshine Electronics 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 Techshine Electronics Co are associated (or correlated) with Shenzhen RoadRover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen RoadRover has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and Shenzhen RoadRover go up and down completely randomly.
Pair Corralation between Techshine Electronics and Shenzhen RoadRover
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 1.15 times more return on investment than Shenzhen RoadRover. However, Techshine Electronics is 1.15 times more volatile than Shenzhen RoadRover Technology. It trades about 0.13 of its potential returns per unit of risk. Shenzhen RoadRover Technology is currently generating about 0.01 per unit of risk. If you would invest 1,617 in Techshine Electronics Co on September 25, 2024 and sell it today you would earn a total of 447.00 from holding Techshine Electronics Co or generate 27.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Techshine Electronics Co vs. Shenzhen RoadRover Technology
Performance |
Timeline |
Techshine Electronics |
Shenzhen RoadRover |
Techshine Electronics and Shenzhen RoadRover Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Techshine Electronics and Shenzhen RoadRover
The main advantage of trading using opposite Techshine Electronics and Shenzhen RoadRover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, Shenzhen RoadRover 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 RoadRover will offset losses from the drop in Shenzhen RoadRover's long position.Techshine Electronics vs. Industrial and Commercial | Techshine Electronics vs. China Construction Bank | Techshine Electronics vs. Agricultural Bank of | Techshine Electronics vs. Bank of China |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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