Correlation Between HeNan Splendor and Dongxing Sec
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By analyzing existing cross correlation between HeNan Splendor Science and Dongxing Sec Co, you can compare the effects of market volatilities on HeNan Splendor and Dongxing Sec 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 HeNan Splendor with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Dongxing Sec.
Diversification Opportunities for HeNan Splendor and Dongxing Sec
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between HeNan and Dongxing is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Dongxing Sec go up and down completely randomly.
Pair Corralation between HeNan Splendor and Dongxing Sec
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.32 times more return on investment than Dongxing Sec. However, HeNan Splendor is 1.32 times more volatile than Dongxing Sec Co. It trades about 0.1 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.08 per unit of risk. If you would invest 1,007 in HeNan Splendor Science on October 25, 2024 and sell it today you would earn a total of 70.00 from holding HeNan Splendor Science or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Dongxing Sec Co
Performance |
| Timeline |
| HeNan Splendor Science |
| Dongxing Sec |
HeNan Splendor and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Dongxing Sec
The main advantage of trading using opposite HeNan Splendor and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| HeNan Splendor vs. Kweichow Moutai Co | HeNan Splendor vs. NAURA Technology Group | HeNan Splendor vs. APT Medical | HeNan Splendor vs. BYD Co Ltd |
| Dongxing Sec vs. Tianjin Hi Tech Development | Dongxing Sec vs. Strait Innovation Internet | Dongxing Sec vs. Linktel Technologies Co | Dongxing Sec vs. Tongyu Communication |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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