Correlation Between Dhc Software and LianChuang Electronic
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By analyzing existing cross correlation between Dhc Software Co and LianChuang Electronic Technology, you can compare the effects of market volatilities on Dhc Software and LianChuang Electronic 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 Dhc Software with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dhc Software and LianChuang Electronic.
Diversification Opportunities for Dhc Software and LianChuang Electronic
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dhc and LianChuang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dhc Software Co and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and Dhc Software 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 Dhc Software Co are associated (or correlated) with LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Dhc Software i.e., Dhc Software and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Dhc Software and LianChuang Electronic
Assuming the 90 days trading horizon Dhc Software Co is expected to generate 0.76 times more return on investment than LianChuang Electronic. However, Dhc Software Co is 1.32 times less risky than LianChuang Electronic. It trades about 0.14 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.09 per unit of risk. If you would invest 453.00 in Dhc Software Co on September 27, 2024 and sell it today you would earn a total of 285.00 from holding Dhc Software Co or generate 62.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dhc Software Co vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Dhc Software |
| LianChuang Electronic |
Dhc Software and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dhc Software and LianChuang Electronic
The main advantage of trading using opposite Dhc Software and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dhc Software position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Dhc Software vs. Ming Yang Smart | Dhc Software vs. 159681 | Dhc Software vs. 159005 | Dhc Software vs. Loctek Ergonomic Technology |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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