Correlation Between Dongjiang Environmental and Shengyi Technology
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By analyzing existing cross correlation between Dongjiang Environmental Co and Shengyi Technology Co, you can compare the effects of market volatilities on Dongjiang Environmental and Shengyi Technology 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 Shengyi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjiang Environmental and Shengyi Technology.
Diversification Opportunities for Dongjiang Environmental and Shengyi Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongjiang and Shengyi is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dongjiang Environmental Co and Shengyi Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyi Technology 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 Shengyi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyi Technology has no effect on the direction of Dongjiang Environmental i.e., Dongjiang Environmental and Shengyi Technology go up and down completely randomly.
Pair Corralation between Dongjiang Environmental and Shengyi Technology
Assuming the 90 days trading horizon Dongjiang Environmental is expected to generate 14.77 times less return on investment than Shengyi Technology. In addition to that, Dongjiang Environmental is 1.05 times more volatile than Shengyi Technology Co. It trades about 0.0 of its total potential returns per unit of risk. Shengyi Technology Co is currently generating about 0.05 per unit of volatility. If you would invest 1,781 in Shengyi Technology Co on September 12, 2024 and sell it today you would earn a total of 501.00 from holding Shengyi Technology Co or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongjiang Environmental Co vs. Shengyi Technology Co
Performance |
| Timeline |
| Dongjiang Environmental |
| Shengyi Technology |
Dongjiang Environmental and Shengyi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjiang Environmental and Shengyi Technology
The main advantage of trading using opposite Dongjiang Environmental and Shengyi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjiang Environmental position performs unexpectedly, Shengyi Technology 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 Shengyi Technology will offset losses from the drop in Shengyi Technology's long position.| Dongjiang Environmental vs. Agricultural Bank of | Dongjiang Environmental vs. Industrial and Commercial | Dongjiang Environmental vs. Bank of China | Dongjiang Environmental vs. PetroChina Co Ltd |
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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