Correlation Between Digital China and Changshu Tongrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Digital China Information and Changshu Tongrun Auto, you can compare the effects of market volatilities on Digital China and Changshu Tongrun 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 Changshu Tongrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and Changshu Tongrun.
Diversification Opportunities for Digital China and Changshu Tongrun
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Digital and Changshu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Digital China Information and Changshu Tongrun Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Tongrun Auto 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 Changshu Tongrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Tongrun Auto has no effect on the direction of Digital China i.e., Digital China and Changshu Tongrun go up and down completely randomly.
Pair Corralation between Digital China and Changshu Tongrun
Assuming the 90 days trading horizon Digital China is expected to generate 10.73 times less return on investment than Changshu Tongrun. In addition to that, Digital China is 1.07 times more volatile than Changshu Tongrun Auto. It trades about 0.01 of its total potential returns per unit of risk. Changshu Tongrun Auto is currently generating about 0.08 per unit of volatility. If you would invest 1,785 in Changshu Tongrun Auto on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Changshu Tongrun Auto or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Digital China Information vs. Changshu Tongrun Auto
Performance |
| Timeline |
| Digital China Information |
| Changshu Tongrun Auto |
Digital China and Changshu Tongrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and Changshu Tongrun
The main advantage of trading using opposite Digital China and Changshu Tongrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China position performs unexpectedly, Changshu Tongrun 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 Changshu Tongrun will offset losses from the drop in Changshu Tongrun's long position.| Digital China vs. Xinjiang Beixin RoadBridge | Digital China vs. Hunan TV Broadcast | Digital China vs. Union Semiconductor Co | Digital China vs. Fujian Longzhou Transportation |
| Changshu Tongrun vs. CITIC Guoan Information | Changshu Tongrun vs. Invengo Information Technology | Changshu Tongrun vs. China Asset Management | Changshu Tongrun vs. Digital China Information |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets |