Correlation Between Dongjiang Environmental and Risesun Real
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By analyzing existing cross correlation between Dongjiang Environmental Co and Risesun Real Estate, you can compare the effects of market volatilities on Dongjiang Environmental and Risesun Real 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 Dongjiang Environmental with a short position of Risesun Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjiang Environmental and Risesun Real.
Diversification Opportunities for Dongjiang Environmental and Risesun Real
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongjiang and Risesun is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dongjiang Environmental Co and Risesun Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Risesun Real Estate and Dongjiang Environmental 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 Dongjiang Environmental Co are associated (or correlated) with Risesun Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Risesun Real Estate has no effect on the direction of Dongjiang Environmental i.e., Dongjiang Environmental and Risesun Real go up and down completely randomly.
Pair Corralation between Dongjiang Environmental and Risesun Real
Assuming the 90 days trading horizon Dongjiang Environmental Co is expected to under-perform the Risesun Real. But the stock apears to be less risky and, when comparing its historical volatility, Dongjiang Environmental Co is 1.71 times less risky than Risesun Real. The stock trades about 0.0 of its potential returns per unit of risk. The Risesun Real Estate is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 240.00 in Risesun Real Estate on September 5, 2024 and sell it today you would lose (16.00) from holding Risesun Real Estate or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Dongjiang Environmental Co vs. Risesun Real Estate
Performance |
| Timeline |
| Dongjiang Environmental |
| Risesun Real Estate |
Dongjiang Environmental and Risesun Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjiang Environmental and Risesun Real
The main advantage of trading using opposite Dongjiang Environmental and Risesun Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjiang Environmental position performs unexpectedly, Risesun Real 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 Risesun Real will offset losses from the drop in Risesun Real's long position.| Dongjiang Environmental vs. Ming Yang Smart | Dongjiang Environmental vs. 159681 | Dongjiang Environmental vs. 159005 | Dongjiang Environmental vs. 516220 |
| Risesun Real vs. Nanjing Putian Telecommunications | Risesun Real vs. Tianjin Realty Development | Risesun Real vs. Shenyang Huitian Thermal | Risesun Real vs. Shenzhen Changfang Light |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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