Correlation Between Shenzhen SDG and Digiwin Software
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By analyzing existing cross correlation between Shenzhen SDG Information and Digiwin Software Co, you can compare the effects of market volatilities on Shenzhen SDG 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 Shenzhen SDG with a short position of Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Digiwin Software.
Diversification Opportunities for Shenzhen SDG and Digiwin Software
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Digiwin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software and Shenzhen SDG 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 Shenzhen SDG Information 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 Shenzhen SDG i.e., Shenzhen SDG and Digiwin Software go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Digiwin Software
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to under-perform the Digiwin Software. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen SDG Information is 2.33 times less risky than Digiwin Software. The stock trades about -0.09 of its potential returns per unit of risk. The Digiwin Software Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,691 in Digiwin Software Co on October 27, 2024 and sell it today you would earn a total of 525.00 from holding Digiwin Software Co or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Digiwin Software Co
Performance |
| Timeline |
| Shenzhen SDG Information |
| Digiwin Software |
Shenzhen SDG and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Digiwin Software
The main advantage of trading using opposite Shenzhen SDG and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG 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.| Shenzhen SDG vs. Bus Online Co | Shenzhen SDG vs. Holitech Technology Co | Shenzhen SDG vs. Gome Telecom Equipment | Shenzhen SDG vs. Cultural Investment Holdings |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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