Correlation Between Do Fluoride and Changchun High
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Changchun High New, you can compare the effects of market volatilities on Do Fluoride and Changchun High 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 Do Fluoride with a short position of Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Changchun High.
Diversification Opportunities for Do Fluoride and Changchun High
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002407 and Changchun is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New and Do Fluoride 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 Do Fluoride Chemicals Co are associated (or correlated) with Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Do Fluoride i.e., Do Fluoride and Changchun High go up and down completely randomly.
Pair Corralation between Do Fluoride and Changchun High
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to generate 1.09 times more return on investment than Changchun High. However, Do Fluoride is 1.09 times more volatile than Changchun High New. It trades about -0.03 of its potential returns per unit of risk. Changchun High New is currently generating about -0.04 per unit of risk. If you would invest 1,368 in Do Fluoride Chemicals Co on October 14, 2024 and sell it today you would lose (254.00) from holding Do Fluoride Chemicals Co or give up 18.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Changchun High New
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Changchun High New |
Do Fluoride and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Changchun High
The main advantage of trading using opposite Do Fluoride and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Do Fluoride vs. Songz Automobile Air | Do Fluoride vs. Jiugui Liquor Co | Do Fluoride vs. Anhui Jianghuai Automobile | Do Fluoride vs. Sinomach Automobile Co |
| Changchun High vs. Tieling Newcity Investment | Changchun High vs. Zhongrun Resources Investment | Changchun High vs. Do Fluoride Chemicals Co | Changchun High vs. Weichai Heavy Machinery |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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