Correlation Between China Merchants and Digiwin Software
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By analyzing existing cross correlation between China Merchants Shekou and Digiwin Software Co, you can compare the effects of market volatilities on China Merchants and Digiwin 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 China Merchants with a short position of Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Digiwin Software.
Diversification Opportunities for China Merchants and Digiwin Software
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Digiwin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software and China Merchants 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 Merchants Shekou are associated (or correlated) with Digiwin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digiwin Software has no effect on the direction of China Merchants i.e., China Merchants and Digiwin Software go up and down completely randomly.
Pair Corralation between China Merchants and Digiwin Software
Assuming the 90 days trading horizon China Merchants Shekou is expected to under-perform the Digiwin Software. But the stock apears to be less risky and, when comparing its historical volatility, China Merchants Shekou is 3.57 times less risky than Digiwin Software. The stock trades about -0.01 of its potential returns per unit of risk. The Digiwin Software Co is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 2,276 in Digiwin Software Co on November 5, 2024 and sell it today you would earn a total of 1,016 from holding Digiwin Software Co or generate 44.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Digiwin Software Co
Performance |
| Timeline |
| China Merchants Shekou |
| Digiwin Software |
China Merchants and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Digiwin Software
The main advantage of trading using opposite China Merchants and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Digiwin 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 Digiwin Software will offset losses from the drop in Digiwin Software's long position.| China Merchants vs. Maoming Petro Chemical Shihua | China Merchants vs. Xinxiang Chemical Fiber | China Merchants vs. Orinko Advanced Plastics | China Merchants vs. Beijing Lier High |
| Digiwin Software vs. Iat Automobile Technology | Digiwin Software vs. Guangzhou Automobile Group | Digiwin Software vs. Ningbo Fangzheng Automobile | Digiwin Software vs. Queclink Wireless Solutions |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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