Correlation Between Digital China and Yunnan Yuntou
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By analyzing existing cross correlation between Digital China Information and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Digital China and Yunnan Yuntou 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 Digital China with a short position of Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and Yunnan Yuntou.
Diversification Opportunities for Digital China and Yunnan Yuntou
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digital and Yunnan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Digital China Information and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology and Digital China 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 Digital China Information are associated (or correlated) with Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of Digital China i.e., Digital China and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Digital China and Yunnan Yuntou
Assuming the 90 days trading horizon Digital China Information is expected to generate 1.31 times more return on investment than Yunnan Yuntou. However, Digital China is 1.31 times more volatile than Yunnan Yuntou Ecology. It trades about 0.02 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about -0.01 per unit of risk. If you would invest 1,070 in Digital China Information on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Digital China Information or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital China Information vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Digital China Information |
| Yunnan Yuntou Ecology |
Digital China and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and Yunnan Yuntou
The main advantage of trading using opposite Digital China and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China position performs unexpectedly, Yunnan Yuntou 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 Yunnan Yuntou will offset losses from the drop in Yunnan Yuntou's long position.| Digital China vs. Fujian Rongji Software | Digital China vs. Dongguan Aohai Technology | Digital China vs. Hangzhou Pinming Software | Digital China vs. Vontron Technology Co |
| Yunnan Yuntou vs. Cultural Investment Holdings | Yunnan Yuntou vs. Gome Telecom Equipment | Yunnan Yuntou vs. Bus Online Co | Yunnan Yuntou vs. Holitech Technology 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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