Correlation Between Anhui Guofeng and Dhc Software
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By analyzing existing cross correlation between Anhui Guofeng Plastic and Dhc Software Co, you can compare the effects of market volatilities on Anhui Guofeng and Dhc Software 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 Anhui Guofeng with a short position of Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Guofeng and Dhc Software.
Diversification Opportunities for Anhui Guofeng and Dhc Software
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Dhc is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Guofeng Plastic and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software and Anhui Guofeng 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 Anhui Guofeng Plastic are associated (or correlated) with Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of Anhui Guofeng i.e., Anhui Guofeng and Dhc Software go up and down completely randomly.
Pair Corralation between Anhui Guofeng and Dhc Software
Assuming the 90 days trading horizon Anhui Guofeng Plastic is expected to under-perform the Dhc Software. In addition to that, Anhui Guofeng is 1.19 times more volatile than Dhc Software Co. It trades about -0.17 of its total potential returns per unit of risk. Dhc Software Co is currently generating about -0.17 per unit of volatility. If you would invest 764.00 in Dhc Software Co on October 25, 2024 and sell it today you would lose (68.00) from holding Dhc Software Co or give up 8.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Guofeng Plastic vs. Dhc Software Co
Performance |
| Timeline |
| Anhui Guofeng Plastic |
| Dhc Software |
Anhui Guofeng and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Guofeng and Dhc Software
The main advantage of trading using opposite Anhui Guofeng and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Guofeng position performs unexpectedly, Dhc Software 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| Anhui Guofeng vs. Zijin Mining Group | Anhui Guofeng vs. Wanhua Chemical Group | Anhui Guofeng vs. Baoshan Iron Steel | Anhui Guofeng vs. Rongsheng Petrochemical Co |
| Dhc Software vs. Anhui Guofeng Plastic | Dhc Software vs. Ningbo Tip Rubber | Dhc Software vs. Super Dragon Engineering Plastics | Dhc Software vs. Qingdao Choho Industrial |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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