Correlation Between Lianhe Chemical and Dhc Software
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By analyzing existing cross correlation between Lianhe Chemical Technology and Dhc Software Co, you can compare the effects of market volatilities on Lianhe Chemical and Dhc 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 Lianhe Chemical with a short position of Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lianhe Chemical and Dhc Software.
Diversification Opportunities for Lianhe Chemical and Dhc Software
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lianhe and Dhc is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lianhe Chemical Technology and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software and Lianhe Chemical 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 Lianhe Chemical Technology are associated (or correlated) with Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of Lianhe Chemical i.e., Lianhe Chemical and Dhc Software go up and down completely randomly.
Pair Corralation between Lianhe Chemical and Dhc Software
Assuming the 90 days trading horizon Lianhe Chemical Technology is expected to under-perform the Dhc Software. But the stock apears to be less risky and, when comparing its historical volatility, Lianhe Chemical Technology is 2.43 times less risky than Dhc Software. The stock trades about 0.0 of its potential returns per unit of risk. The Dhc Software Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 602.00 in Dhc Software Co on August 29, 2024 and sell it today you would earn a total of 199.00 from holding Dhc Software Co or generate 33.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lianhe Chemical Technology vs. Dhc Software Co
Performance |
| Timeline |
| Lianhe Chemical Tech |
| Dhc Software |
Lianhe Chemical and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lianhe Chemical and Dhc Software
The main advantage of trading using opposite Lianhe Chemical and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lianhe Chemical position performs unexpectedly, Dhc 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| Lianhe Chemical vs. Sportsoul Co Ltd | Lianhe Chemical vs. Dawning Information Industry | Lianhe Chemical vs. AVCON Information Tech | Lianhe Chemical vs. Focus Media Information |
| Dhc Software vs. Jiaozuo Wanfang Aluminum | Dhc Software vs. Sino Platinum Metals Co | Dhc Software vs. Tibet Huayu Mining | Dhc Software vs. Heilongjiang Transport Development |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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