Correlation Between Techshine Electronics and Shijiazhuang Tonhe
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By analyzing existing cross correlation between Techshine Electronics Co and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Techshine Electronics and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Shijiazhuang Tonhe.
Diversification Opportunities for Techshine Electronics and Shijiazhuang Tonhe
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Techshine and Shijiazhuang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Techshine Electronics and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Techshine Electronics is expected to generate 1.41 times less return on investment than Shijiazhuang Tonhe. But when comparing it to its historical volatility, Techshine Electronics Co is 1.18 times less risky than Shijiazhuang Tonhe. It trades about 0.02 of its potential returns per unit of risk. Shijiazhuang Tonhe Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,403 in Shijiazhuang Tonhe Electronics on September 24, 2024 and sell it today you would earn a total of 314.00 from holding Shijiazhuang Tonhe Electronics or generate 22.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Techshine Electronics Co vs. Shijiazhuang Tonhe Electronics
Performance |
Timeline |
Techshine Electronics |
Shijiazhuang Tonhe |
Techshine Electronics and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Techshine Electronics and Shijiazhuang Tonhe
The main advantage of trading using opposite Techshine Electronics and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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