Correlation Between China Vanke and Digiwin Software
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By analyzing existing cross correlation between China Vanke Co and Digiwin Software Co, you can compare the effects of market volatilities on China Vanke and Digiwin Software 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 China Vanke with a short position of Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Digiwin Software.
Diversification Opportunities for China Vanke and Digiwin Software
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Digiwin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software and China Vanke 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 China Vanke Co are associated (or correlated) with Digiwin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digiwin Software has no effect on the direction of China Vanke i.e., China Vanke and Digiwin Software go up and down completely randomly.
Pair Corralation between China Vanke and Digiwin Software
Assuming the 90 days trading horizon China Vanke is expected to generate 4.53 times less return on investment than Digiwin Software. But when comparing it to its historical volatility, China Vanke Co is 1.48 times less risky than Digiwin Software. It trades about 0.04 of its potential returns per unit of risk. Digiwin Software Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,515 in Digiwin Software Co on October 26, 2024 and sell it today you would earn a total of 1,165 from holding Digiwin Software Co or generate 76.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Digiwin Software Co
Performance |
| Timeline |
| China Vanke |
| Digiwin Software |
China Vanke and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Digiwin Software
The main advantage of trading using opposite China Vanke and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Digiwin Software 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 Digiwin Software will offset losses from the drop in Digiwin Software's long position.| China Vanke vs. Ningbo Kangqiang Electronics | China Vanke vs. Anhui Jianghuai Automobile | China Vanke vs. Huizhou Speed Wireless | China Vanke vs. Epoxy Base Electronic |
| Digiwin Software vs. China State Construction | Digiwin Software vs. Poly Real Estate | Digiwin Software vs. China Vanke Co | Digiwin Software vs. China Merchants Shekou |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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