Correlation Between Jiangxi Hengda and Dosilicon
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Dosilicon Co, you can compare the effects of market volatilities on Jiangxi Hengda and Dosilicon 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 Jiangxi Hengda with a short position of Dosilicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Dosilicon.
Diversification Opportunities for Jiangxi Hengda and Dosilicon
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangxi and Dosilicon is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Dosilicon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dosilicon and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with Dosilicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dosilicon has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Dosilicon go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Dosilicon
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.11 times more return on investment than Dosilicon. However, Jiangxi Hengda is 1.11 times more volatile than Dosilicon Co. It trades about 0.15 of its potential returns per unit of risk. Dosilicon Co is currently generating about 0.01 per unit of risk. If you would invest 453.00 in Jiangxi Hengda Hi Tech on November 4, 2024 and sell it today you would earn a total of 38.00 from holding Jiangxi Hengda Hi Tech or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Dosilicon Co
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Dosilicon |
Jiangxi Hengda and Dosilicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Dosilicon
The main advantage of trading using opposite Jiangxi Hengda and Dosilicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Dosilicon 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 Dosilicon will offset losses from the drop in Dosilicon's long position.| Jiangxi Hengda vs. Fibocom Wireless | Jiangxi Hengda vs. Beijing Lier High | Jiangxi Hengda vs. Ningbo Tip Rubber | Jiangxi Hengda vs. Guangdong Sunwill Precising |
| Dosilicon vs. Emdoor Information Co | Dosilicon vs. Touchstone International Medical | Dosilicon vs. Invengo Information Technology | Dosilicon vs. Northking Information Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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