Correlation Between Der International and Dongguan Aohai
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By analyzing existing cross correlation between Der International Home and Dongguan Aohai Technology, you can compare the effects of market volatilities on Der International and Dongguan Aohai 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 Der International with a short position of Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Dongguan Aohai.
Diversification Opportunities for Der International and Dongguan Aohai
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Der and Dongguan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology and Der International 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 Der International Home are associated (or correlated) with Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of Der International i.e., Der International and Dongguan Aohai go up and down completely randomly.
Pair Corralation between Der International and Dongguan Aohai
Assuming the 90 days trading horizon Der International Home is expected to under-perform the Dongguan Aohai. In addition to that, Der International is 1.13 times more volatile than Dongguan Aohai Technology. It trades about -0.07 of its total potential returns per unit of risk. Dongguan Aohai Technology is currently generating about 0.26 per unit of volatility. If you would invest 3,251 in Dongguan Aohai Technology on September 27, 2024 and sell it today you would earn a total of 801.00 from holding Dongguan Aohai Technology or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. Dongguan Aohai Technology
Performance |
| Timeline |
| Der International Home |
| Dongguan Aohai Technology |
Der International and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and Dongguan Aohai
The main advantage of trading using opposite Der International and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai's long position.| Der International vs. Youyou Foods Co | Der International vs. Shantou Wanshun Package | Der International vs. Muyuan Foodstuff Co | Der International vs. Huasi Agricultural Development |
| Dongguan Aohai vs. Pengxin International Mining | Dongguan Aohai vs. Guocheng Mining Co | Dongguan Aohai vs. Zhangjiagang Freetrade Science | Dongguan Aohai vs. Chongqing Changan Automobile |
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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