Correlation Between Shantui Construction and DO Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shantui Construction Machinery and DO Home Collection, you can compare the effects of market volatilities on Shantui Construction and DO Home 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 Shantui Construction with a short position of DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and DO Home.
Diversification Opportunities for Shantui Construction and DO Home
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shantui and 002798 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Shantui Construction i.e., Shantui Construction and DO Home go up and down completely randomly.
Pair Corralation between Shantui Construction and DO Home
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 1.07 times more return on investment than DO Home. However, Shantui Construction is 1.07 times more volatile than DO Home Collection. It trades about 0.22 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.1 per unit of risk. If you would invest 893.00 in Shantui Construction Machinery on September 1, 2024 and sell it today you would earn a total of 150.00 from holding Shantui Construction Machinery or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. DO Home Collection
Performance |
| Timeline |
| Shantui Construction |
| DO Home Collection |
Shantui Construction and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and DO Home
The main advantage of trading using opposite Shantui Construction and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Shantui Construction vs. Kweichow Moutai Co | Shantui Construction vs. NAURA Technology Group | Shantui Construction vs. Zhejiang Orient Gene | Shantui Construction vs. APT Medical |
| DO Home vs. Sinocat Environmental Technology | DO Home vs. Beijing SPC Environment | DO Home vs. Yankershop Food Co | DO Home vs. Anji Foodstuff 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |