Correlation Between Techshine Electronics and Aerospace
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By analyzing existing cross correlation between Techshine Electronics Co and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Techshine Electronics and Aerospace 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 Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Aerospace.
Diversification Opportunities for Techshine Electronics and Aerospace
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Techshine and Aerospace is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech 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 Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and Aerospace go up and down completely randomly.
Pair Corralation between Techshine Electronics and Aerospace
Assuming the 90 days trading horizon Techshine Electronics Co is expected to generate 0.97 times more return on investment than Aerospace. However, Techshine Electronics Co is 1.03 times less risky than Aerospace. It trades about 0.17 of its potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about 0.13 per unit of risk. If you would invest 1,554 in Techshine Electronics Co on September 23, 2024 and sell it today you would earn a total of 614.00 from holding Techshine Electronics Co or generate 39.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Techshine Electronics Co vs. Aerospace Hi Tech Holding
Performance |
Timeline |
Techshine Electronics |
Aerospace Hi Tech |
Techshine Electronics and Aerospace Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Techshine Electronics and Aerospace
The main advantage of trading using opposite Techshine Electronics and Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, Aerospace 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 Aerospace will offset losses from the drop in Aerospace'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 |
Aerospace vs. China Life Insurance | Aerospace vs. Cinda Securities Co | Aerospace vs. Piotech Inc A | Aerospace vs. Dongxing Sec Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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