Correlation Between Techshine Electronics and Shanghai Putailai
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By analyzing existing cross correlation between Techshine Electronics Co and Shanghai Putailai New, you can compare the effects of market volatilities on Techshine Electronics and Shanghai Putailai 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 Shanghai Putailai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techshine Electronics and Shanghai Putailai.
Diversification Opportunities for Techshine Electronics and Shanghai Putailai
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Techshine and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Techshine Electronics Co and Shanghai Putailai New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Putailai New 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 Shanghai Putailai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Putailai New has no effect on the direction of Techshine Electronics i.e., Techshine Electronics and Shanghai Putailai go up and down completely randomly.
Pair Corralation between Techshine Electronics and Shanghai Putailai
Assuming the 90 days trading horizon Techshine Electronics is expected to generate 1.45 times less return on investment than Shanghai Putailai. But when comparing it to its historical volatility, Techshine Electronics Co is 1.25 times less risky than Shanghai Putailai. It trades about 0.17 of its potential returns per unit of risk. Shanghai Putailai New is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,067 in Shanghai Putailai New on September 23, 2024 and sell it today you would earn a total of 653.00 from holding Shanghai Putailai New or generate 61.2% 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. Shanghai Putailai New
Performance |
Timeline |
Techshine Electronics |
Shanghai Putailai New |
Techshine Electronics and Shanghai Putailai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Techshine Electronics and Shanghai Putailai
The main advantage of trading using opposite Techshine Electronics and Shanghai Putailai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techshine Electronics position performs unexpectedly, Shanghai Putailai 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 Shanghai Putailai will offset losses from the drop in Shanghai Putailai'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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