Correlation Between Telling Telecommunicatio and Dongfeng Automobile
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By analyzing existing cross correlation between Telling Telecommunication Holding and Dongfeng Automobile Co, you can compare the effects of market volatilities on Telling Telecommunicatio and Dongfeng Automobile 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 Telling Telecommunicatio with a short position of Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telling Telecommunicatio and Dongfeng Automobile.
Diversification Opportunities for Telling Telecommunicatio and Dongfeng Automobile
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Telling and Dongfeng is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Telling Telecommunication Hold and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile and Telling Telecommunicatio 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 Telling Telecommunication Holding are associated (or correlated) with Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Telling Telecommunicatio i.e., Telling Telecommunicatio and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Telling Telecommunicatio and Dongfeng Automobile
Assuming the 90 days trading horizon Telling Telecommunication Holding is expected to under-perform the Dongfeng Automobile. In addition to that, Telling Telecommunicatio is 1.21 times more volatile than Dongfeng Automobile Co. It trades about -0.37 of its total potential returns per unit of risk. Dongfeng Automobile Co is currently generating about -0.19 per unit of volatility. If you would invest 744.00 in Dongfeng Automobile Co on November 3, 2024 and sell it today you would lose (79.00) from holding Dongfeng Automobile Co or give up 10.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telling Telecommunication Hold vs. Dongfeng Automobile Co
Performance |
| Timeline |
| Telling Telecommunicatio |
| Dongfeng Automobile |
Telling Telecommunicatio and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telling Telecommunicatio and Dongfeng Automobile
The main advantage of trading using opposite Telling Telecommunicatio and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telling Telecommunicatio position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.The idea behind Telling Telecommunication Holding and Dongfeng Automobile Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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