Correlation Between Digital China and Qi An
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By analyzing existing cross correlation between Digital China Information and Qi An Xin, you can compare the effects of market volatilities on Digital China and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and Qi An.
Diversification Opportunities for Digital China and Qi An
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digital and 688561 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Digital China Information and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Digital China i.e., Digital China and Qi An go up and down completely randomly.
Pair Corralation between Digital China and Qi An
Assuming the 90 days trading horizon Digital China Information is expected to under-perform the Qi An. But the stock apears to be less risky and, when comparing its historical volatility, Digital China Information is 1.17 times less risky than Qi An. The stock trades about 0.0 of its potential returns per unit of risk. The Qi An Xin is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,110 in Qi An Xin on September 3, 2024 and sell it today you would lose (52.00) from holding Qi An Xin or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital China Information vs. Qi An Xin
Performance |
| Timeline |
| Digital China Information |
| Qi An Xin |
Digital China and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and Qi An
The main advantage of trading using opposite Digital China and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An'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 |
| Qi An vs. Haima Automobile Group | Qi An vs. Dongfeng Automobile Co | Qi An vs. Anhui Jianghuai Automobile | Qi An vs. Peoples Insurance of |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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