Correlation Between Dongrui Food and China Asset
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By analyzing existing cross correlation between Dongrui Food Group and China Asset Management, you can compare the effects of market volatilities on Dongrui Food and China Asset 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 Dongrui Food with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongrui Food and China Asset.
Diversification Opportunities for Dongrui Food and China Asset
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongrui and China is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dongrui Food Group and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and Dongrui Food 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 Dongrui Food Group are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Dongrui Food i.e., Dongrui Food and China Asset go up and down completely randomly.
Pair Corralation between Dongrui Food and China Asset
Assuming the 90 days trading horizon Dongrui Food Group is expected to under-perform the China Asset. In addition to that, Dongrui Food is 1.52 times more volatile than China Asset Management. It trades about -0.01 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.2 per unit of volatility. If you would invest 323.00 in China Asset Management on September 13, 2024 and sell it today you would earn a total of 18.00 from holding China Asset Management or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongrui Food Group vs. China Asset Management
Performance |
| Timeline |
| Dongrui Food Group |
| China Asset Management |
Dongrui Food and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongrui Food and China Asset
The main advantage of trading using opposite Dongrui Food and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongrui Food position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Dongrui Food vs. New China Life | Dongrui Food vs. Ming Yang Smart | Dongrui Food vs. 159681 | Dongrui Food vs. 159005 |
| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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