Correlation Between Integrated Electronic and Digital China
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By analyzing existing cross correlation between Integrated Electronic Systems and Digital China Information, you can compare the effects of market volatilities on Integrated Electronic and Digital China 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 Integrated Electronic with a short position of Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Digital China.
Diversification Opportunities for Integrated Electronic and Digital China
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Integrated and Digital is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information and Integrated Electronic 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 Integrated Electronic Systems are associated (or correlated) with Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of Integrated Electronic i.e., Integrated Electronic and Digital China go up and down completely randomly.
Pair Corralation between Integrated Electronic and Digital China
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 0.92 times more return on investment than Digital China. However, Integrated Electronic Systems is 1.09 times less risky than Digital China. It trades about 0.03 of its potential returns per unit of risk. Digital China Information is currently generating about 0.02 per unit of risk. If you would invest 707.00 in Integrated Electronic Systems on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Integrated Electronic Systems or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Digital China Information
Performance |
| Timeline |
| Integrated Electronic |
| Digital China Information |
Integrated Electronic and Digital China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Digital China
The main advantage of trading using opposite Integrated Electronic and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.| Integrated Electronic vs. PetroChina Co Ltd | Integrated Electronic vs. China State Construction | Integrated Electronic vs. China Mobile Limited | Integrated Electronic vs. Industrial and Commercial |
| Digital China vs. Chongqing Brewery Co | Digital China vs. Vontron Technology Co | Digital China vs. Dongguan Aohai Technology | Digital China vs. Sinofibers Technology Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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