Correlation Between Songz Automobile and Dongnan Electronics
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By analyzing existing cross correlation between Songz Automobile Air and Dongnan Electronics Co, you can compare the effects of market volatilities on Songz Automobile and Dongnan Electronics 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 Songz Automobile with a short position of Dongnan Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Dongnan Electronics.
Diversification Opportunities for Songz Automobile and Dongnan Electronics
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and Dongnan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Dongnan Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongnan Electronics and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Dongnan Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongnan Electronics has no effect on the direction of Songz Automobile i.e., Songz Automobile and Dongnan Electronics go up and down completely randomly.
Pair Corralation between Songz Automobile and Dongnan Electronics
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.72 times more return on investment than Dongnan Electronics. However, Songz Automobile Air is 1.39 times less risky than Dongnan Electronics. It trades about -0.04 of its potential returns per unit of risk. Dongnan Electronics Co is currently generating about -0.07 per unit of risk. If you would invest 681.00 in Songz Automobile Air on October 16, 2024 and sell it today you would lose (29.00) from holding Songz Automobile Air or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Dongnan Electronics Co
Performance |
| Timeline |
| Songz Automobile Air |
| Dongnan Electronics |
Songz Automobile and Dongnan Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Dongnan Electronics
The main advantage of trading using opposite Songz Automobile and Dongnan Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Dongnan Electronics 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 Dongnan Electronics will offset losses from the drop in Dongnan Electronics' long position.| Songz Automobile vs. Hunan Investment Group | Songz Automobile vs. Zhejiang Construction Investment | Songz Automobile vs. Nuode Investment Co | Songz Automobile vs. Lander Sports Development |
| Dongnan Electronics vs. Songz Automobile Air | Dongnan Electronics vs. Haima Automobile Group | Dongnan Electronics vs. Fibocom Wireless | Dongnan Electronics vs. Zhangjiagang Freetrade Science |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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