Correlation Between Do Fluoride and Epoxy Base
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Epoxy Base Electronic, you can compare the effects of market volatilities on Do Fluoride and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Epoxy Base.
Diversification Opportunities for Do Fluoride and Epoxy Base
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002407 and Epoxy is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Do Fluoride i.e., Do Fluoride and Epoxy Base go up and down completely randomly.
Pair Corralation between Do Fluoride and Epoxy Base
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to under-perform the Epoxy Base. But the stock apears to be less risky and, when comparing its historical volatility, Do Fluoride Chemicals Co is 1.34 times less risky than Epoxy Base. The stock trades about 0.0 of its potential returns per unit of risk. The Epoxy Base Electronic is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 542.00 in Epoxy Base Electronic on August 26, 2024 and sell it today you would lose (19.00) from holding Epoxy Base Electronic or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Epoxy Base Electronic
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Epoxy Base Electronic |
Do Fluoride and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Epoxy Base
The main advantage of trading using opposite Do Fluoride and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Do Fluoride vs. Guangdong Liantai Environmental | Do Fluoride vs. Hang Xiao Steel | Do Fluoride vs. Shengda Mining Co | Do Fluoride vs. Uroica Mining Safety |
| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Shandong Gold Mining |
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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