Correlation Between Daoming OpticsChemical and Shanghai Action
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By analyzing existing cross correlation between Daoming OpticsChemical Co and Shanghai Action Education, you can compare the effects of market volatilities on Daoming OpticsChemical and Shanghai Action 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 Daoming OpticsChemical with a short position of Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daoming OpticsChemical and Shanghai Action.
Diversification Opportunities for Daoming OpticsChemical and Shanghai Action
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daoming and Shanghai is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Daoming OpticsChemical Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education and Daoming OpticsChemical 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 Daoming OpticsChemical Co are associated (or correlated) with Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Daoming OpticsChemical i.e., Daoming OpticsChemical and Shanghai Action go up and down completely randomly.
Pair Corralation between Daoming OpticsChemical and Shanghai Action
Assuming the 90 days trading horizon Daoming OpticsChemical Co is expected to generate 0.85 times more return on investment than Shanghai Action. However, Daoming OpticsChemical Co is 1.18 times less risky than Shanghai Action. It trades about 0.13 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.07 per unit of risk. If you would invest 873.00 in Daoming OpticsChemical Co on September 14, 2024 and sell it today you would earn a total of 60.00 from holding Daoming OpticsChemical Co or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daoming OpticsChemical Co vs. Shanghai Action Education
Performance |
| Timeline |
| Daoming OpticsChemical |
| Shanghai Action Education |
Daoming OpticsChemical and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daoming OpticsChemical and Shanghai Action
The main advantage of trading using opposite Daoming OpticsChemical and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daoming OpticsChemical position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Daoming OpticsChemical vs. Zijin Mining Group | Daoming OpticsChemical vs. Wanhua Chemical Group | Daoming OpticsChemical vs. Baoshan Iron Steel | Daoming OpticsChemical vs. Shandong Gold Mining |
| Shanghai Action vs. Kingclean Electric Co | Shanghai Action vs. Daoming OpticsChemical Co | Shanghai Action vs. Lianhe Chemical Technology | Shanghai Action vs. Miracll Chemicals 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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