Correlation Between Shenzhen Glory and Dirui Industrial
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By analyzing existing cross correlation between Shenzhen Glory Medical and Dirui Industrial Co, you can compare the effects of market volatilities on Shenzhen Glory and Dirui Industrial 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 Shenzhen Glory with a short position of Dirui Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Dirui Industrial.
Diversification Opportunities for Shenzhen Glory and Dirui Industrial
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Dirui is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Dirui Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirui Industrial and Shenzhen Glory 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 Shenzhen Glory Medical are associated (or correlated) with Dirui Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirui Industrial has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Dirui Industrial go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Dirui Industrial
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 1.26 times more return on investment than Dirui Industrial. However, Shenzhen Glory is 1.26 times more volatile than Dirui Industrial Co. It trades about 0.21 of its potential returns per unit of risk. Dirui Industrial Co is currently generating about -0.04 per unit of risk. If you would invest 339.00 in Shenzhen Glory Medical on September 14, 2024 and sell it today you would earn a total of 49.00 from holding Shenzhen Glory Medical or generate 14.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Dirui Industrial Co
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Dirui Industrial |
Shenzhen Glory and Dirui Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Dirui Industrial
The main advantage of trading using opposite Shenzhen Glory and Dirui Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Dirui Industrial 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 Dirui Industrial will offset losses from the drop in Dirui Industrial's long position.| Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. China Construction Bank | Shenzhen Glory vs. Bank of China |
| Dirui Industrial vs. Kuang Chi Technologies | Dirui Industrial vs. Shenzhen Glory Medical | Dirui Industrial vs. Linewell Software Co | Dirui Industrial vs. Dhc Software 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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