Correlation Between Integrated Electronic and Dongguan Tarry
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By analyzing existing cross correlation between Integrated Electronic Systems and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Integrated Electronic and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Dongguan Tarry.
Diversification Opportunities for Integrated Electronic and Dongguan Tarry
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integrated and Dongguan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Integrated Electronic i.e., Integrated Electronic and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Integrated Electronic and Dongguan Tarry
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to under-perform the Dongguan Tarry. In addition to that, Integrated Electronic is 1.27 times more volatile than Dongguan Tarry Electronics. It trades about -0.15 of its total potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about -0.14 per unit of volatility. If you would invest 7,295 in Dongguan Tarry Electronics on October 14, 2024 and sell it today you would lose (950.00) from holding Dongguan Tarry Electronics or give up 13.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Integrated Electronic |
| Dongguan Tarry Elect |
Integrated Electronic and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Dongguan Tarry
The main advantage of trading using opposite Integrated Electronic and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Integrated Electronic vs. Wuhan Yangtze Communication | Integrated Electronic vs. Dr Peng Telecom | Integrated Electronic vs. Beijing Kingsoft Office | Integrated Electronic vs. Eastern Communications Co |
| Dongguan Tarry vs. Jiangsu Jinling Sports | Dongguan Tarry vs. Guangxi Wuzhou Communications | Dongguan Tarry vs. XinJiang GuoTong Pipeline | Dongguan Tarry vs. Runjian Communication 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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