Correlation Between Ciwen Media and Dawning Information
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By analyzing existing cross correlation between Ciwen Media Co and Dawning Information Industry, you can compare the effects of market volatilities on Ciwen Media and Dawning Information 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 Ciwen Media with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and Dawning Information.
Diversification Opportunities for Ciwen Media and Dawning Information
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ciwen and Dawning is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Ciwen Media 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 Ciwen Media Co are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Ciwen Media i.e., Ciwen Media and Dawning Information go up and down completely randomly.
Pair Corralation between Ciwen Media and Dawning Information
Assuming the 90 days trading horizon Ciwen Media is expected to generate 7.77 times less return on investment than Dawning Information. In addition to that, Ciwen Media is 1.07 times more volatile than Dawning Information Industry. It trades about 0.01 of its total potential returns per unit of risk. Dawning Information Industry is currently generating about 0.07 per unit of volatility. If you would invest 2,422 in Dawning Information Industry on October 16, 2024 and sell it today you would earn a total of 3,667 from holding Dawning Information Industry or generate 151.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciwen Media Co vs. Dawning Information Industry
Performance |
| Timeline |
| Ciwen Media |
| Dawning Information |
Ciwen Media and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and Dawning Information
The main advantage of trading using opposite Ciwen Media and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Ciwen Media vs. Jiangxi Hengda Hi Tech | Ciwen Media vs. Guangdong Jingyi Metal | Ciwen Media vs. Runjian Communication Co | Ciwen Media vs. Anhui Jinhe Industrial |
| Dawning Information vs. Everdisplay Optronics Shanghai | Dawning Information vs. XiaMen HongXin Electron tech | Dawning Information vs. Sportsoul Co Ltd | Dawning Information vs. Caihong Display Devices |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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