Correlation Between Techshine Electronics and China Union
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By analyzing existing cross correlation between Techshine Electronics Co and China Union Holdings, you can compare the effects of market volatilities on Techshine Electronics and China Union 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 China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and China Union.
Diversification Opportunities for Techshine Electronics and China Union
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Techshine and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings 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 China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and China Union go up and down completely randomly.
Pair Corralation between Techshine Electronics and China Union
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 1.45 times more return on investment than China Union. However, Techshine Electronics is 1.45 times more volatile than China Union Holdings. It trades about 0.03 of its potential returns per unit of risk. China Union Holdings is currently generating about 0.02 per unit of risk. If you would invest 1,802 in Techshine Electronics Co on September 23, 2024 and sell it today you would earn a total of 366.00 from holding Techshine Electronics Co or generate 20.31% 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. China Union Holdings
Performance |
Timeline |
Techshine Electronics |
China Union Holdings |
Techshine Electronics and China Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Techshine Electronics and China Union
The main advantage of trading using opposite Techshine Electronics and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union'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 |
China Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union vs. Ping An Insurance |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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