Correlation Between Sinosteel Engineering and Dongguan Chitwing
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By analyzing existing cross correlation between Sinosteel Engineering and and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Sinosteel Engineering and Dongguan Chitwing 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 Sinosteel Engineering with a short position of Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Dongguan Chitwing.
Diversification Opportunities for Sinosteel Engineering and Dongguan Chitwing
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Dongguan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Dongguan Chitwing
Assuming the 90 days trading horizon Sinosteel Engineering is expected to generate 4.38 times less return on investment than Dongguan Chitwing. But when comparing it to its historical volatility, Sinosteel Engineering and is 1.64 times less risky than Dongguan Chitwing. It trades about 0.03 of its potential returns per unit of risk. Dongguan Chitwing Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 879.00 in Dongguan Chitwing Technology on August 30, 2024 and sell it today you would earn a total of 1,508 from holding Dongguan Chitwing Technology or generate 171.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Dongguan Chitwing Technology
Performance |
| Timeline |
| Sinosteel Engineering and |
| Dongguan Chitwing |
Sinosteel Engineering and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Dongguan Chitwing
The main advantage of trading using opposite Sinosteel Engineering and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| Sinosteel Engineering vs. PetroChina Co Ltd | Sinosteel Engineering vs. China State Construction | Sinosteel Engineering vs. China Mobile Limited | Sinosteel Engineering vs. Industrial and Commercial |
| Dongguan Chitwing vs. Glodon Software Co | Dongguan Chitwing vs. Shenzhen Topway Video | Dongguan Chitwing vs. Shenzhen Bioeasy Biotechnology | Dongguan Chitwing vs. ZYF Lopsking Aluminum |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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