Correlation Between Shanghai Suochen and Tjk Machinery
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By analyzing existing cross correlation between Shanghai Suochen Information and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Shanghai Suochen and Tjk Machinery 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 Shanghai Suochen with a short position of Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Suochen and Tjk Machinery.
Diversification Opportunities for Shanghai Suochen and Tjk Machinery
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Tjk is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Suochen Information and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin and Shanghai Suochen 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 Shanghai Suochen Information are associated (or correlated) with Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Shanghai Suochen i.e., Shanghai Suochen and Tjk Machinery go up and down completely randomly.
Pair Corralation between Shanghai Suochen and Tjk Machinery
Assuming the 90 days trading horizon Shanghai Suochen Information is expected to generate 1.36 times more return on investment than Tjk Machinery. However, Shanghai Suochen is 1.36 times more volatile than Tjk Machinery Tianjin. It trades about 0.11 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about 0.11 per unit of risk. If you would invest 4,599 in Shanghai Suochen Information on September 26, 2024 and sell it today you would earn a total of 1,569 from holding Shanghai Suochen Information or generate 34.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Suochen Information vs. Tjk Machinery Tianjin
Performance |
Timeline |
Shanghai Suochen Inf |
Tjk Machinery Tianjin |
Shanghai Suochen and Tjk Machinery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Suochen and Tjk Machinery
The main advantage of trading using opposite Shanghai Suochen and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Suochen position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery's long position.Shanghai Suochen vs. Industrial and Commercial | Shanghai Suochen vs. Agricultural Bank of | Shanghai Suochen vs. China Construction Bank | Shanghai Suochen 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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