Correlation Between Digital China and Shijiazhuang Yiling
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By analyzing existing cross correlation between Digital China Information and Shijiazhuang Yiling Pharmaceutical, you can compare the effects of market volatilities on Digital China and Shijiazhuang Yiling 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 Shijiazhuang Yiling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and Shijiazhuang Yiling.
Diversification Opportunities for Digital China and Shijiazhuang Yiling
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digital and Shijiazhuang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Digital China Information and Shijiazhuang Yiling Pharmaceut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Yiling 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 Shijiazhuang Yiling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Yiling has no effect on the direction of Digital China i.e., Digital China and Shijiazhuang Yiling go up and down completely randomly.
Pair Corralation between Digital China and Shijiazhuang Yiling
Assuming the 90 days trading horizon Digital China Information is expected to generate 1.63 times more return on investment than Shijiazhuang Yiling. However, Digital China is 1.63 times more volatile than Shijiazhuang Yiling Pharmaceutical. It trades about 0.04 of its potential returns per unit of risk. Shijiazhuang Yiling Pharmaceutical is currently generating about -0.04 per unit of risk. If you would invest 1,183 in Digital China Information on September 14, 2024 and sell it today you would earn a total of 224.00 from holding Digital China Information or generate 18.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Digital China Information vs. Shijiazhuang Yiling Pharmaceut
Performance |
| Timeline |
| Digital China Information |
| Shijiazhuang Yiling |
Digital China and Shijiazhuang Yiling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and Shijiazhuang Yiling
The main advantage of trading using opposite Digital China and Shijiazhuang Yiling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China position performs unexpectedly, Shijiazhuang Yiling 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 Shijiazhuang Yiling will offset losses from the drop in Shijiazhuang Yiling's long position.| Digital China vs. China Petroleum Chemical | Digital China vs. PetroChina Co Ltd | Digital China vs. China State Construction | Digital China vs. China Railway Group |
| Shijiazhuang Yiling vs. BeiGene | Shijiazhuang Yiling vs. Kweichow Moutai Co | Shijiazhuang Yiling vs. Beijing Roborock Technology | Shijiazhuang Yiling vs. G bits Network Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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