Correlation Between China Securities and Dawning Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Dawning Information Industry, you can compare the effects of market volatilities on China Securities and Dawning Information 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 China Securities with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Dawning Information.
Diversification Opportunities for China Securities and Dawning Information
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Dawning is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and China Securities 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 China Securities 800 are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of China Securities i.e., China Securities and Dawning Information go up and down completely randomly.
Pair Corralation between China Securities and Dawning Information
Assuming the 90 days trading horizon China Securities is expected to generate 74.76 times less return on investment than Dawning Information. But when comparing it to its historical volatility, China Securities 800 is 3.5 times less risky than Dawning Information. It trades about 0.01 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 6,120 in Dawning Information Industry on September 1, 2024 and sell it today you would earn a total of 2,360 from holding Dawning Information Industry or generate 38.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Securities 800 vs. Dawning Information Industry
Performance |
| Timeline |
China Securities and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Dawning Information Industry
Pair trading matchups for Dawning Information
Pair Trading with China Securities and Dawning Information
The main advantage of trading using opposite China Securities and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| China Securities vs. Everjoy Health Group | China Securities vs. Fuzhou Rockchip Electronics | China Securities vs. Hangzhou Prevail Optoelectronic | China Securities vs. Aurora Optoelectronics Co |
| Dawning Information vs. Semiconductor Manufacturing Intl | Dawning Information vs. Anhui Conch Cement | Dawning Information vs. Sungrow Power Supply | Dawning Information vs. Shenzhen New Nanshan |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |