Correlation Between Invengo Information and DO Home
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By analyzing existing cross correlation between Invengo Information Technology and DO Home Collection, you can compare the effects of market volatilities on Invengo Information and DO Home 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 Invengo Information with a short position of DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invengo Information and DO Home.
Diversification Opportunities for Invengo Information and DO Home
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Invengo and 002798 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Invengo Information Technology and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection and Invengo Information 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 Invengo Information Technology are associated (or correlated) with DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Invengo Information i.e., Invengo Information and DO Home go up and down completely randomly.
Pair Corralation between Invengo Information and DO Home
Assuming the 90 days trading horizon Invengo Information Technology is expected to generate 1.85 times more return on investment than DO Home. However, Invengo Information is 1.85 times more volatile than DO Home Collection. It trades about 0.12 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.21 per unit of risk. If you would invest 564.00 in Invengo Information Technology on September 4, 2024 and sell it today you would earn a total of 69.00 from holding Invengo Information Technology or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invengo Information Technology vs. DO Home Collection
Performance |
| Timeline |
| Invengo Information |
| DO Home Collection |
Invengo Information and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invengo Information and DO Home
The main advantage of trading using opposite Invengo Information and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invengo Information position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Invengo Information vs. DO Home Collection | Invengo Information vs. Dongfeng Automobile Co | Invengo Information vs. UE Furniture Co | Invengo Information vs. Spring Airlines Co |
| DO Home vs. Agricultural Bank of | DO Home vs. Industrial and Commercial | DO Home vs. Bank of China | DO Home 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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