Correlation Between Zhejiang Construction and Dawning Information
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By analyzing existing cross correlation between Zhejiang Construction Investment and Dawning Information Industry, you can compare the effects of market volatilities on Zhejiang Construction and Dawning Information 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 Zhejiang Construction with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Dawning Information.
Diversification Opportunities for Zhejiang Construction and Dawning Information
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Dawning is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Zhejiang Construction 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 Zhejiang Construction Investment are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Dawning Information go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Dawning Information
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Dawning Information. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Construction Investment is 1.39 times less risky than Dawning Information. The stock trades about -0.23 of its potential returns per unit of risk. The Dawning Information Industry is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 7,848 in Dawning Information Industry on October 28, 2024 and sell it today you would lose (1,198) from holding Dawning Information Industry or give up 15.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Dawning Information Industry
Performance |
| Timeline |
| Zhejiang Construction |
| Dawning Information |
Zhejiang Construction and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Dawning Information
The main advantage of trading using opposite Zhejiang Construction and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Zhejiang Construction vs. Jiangsu Jinling Sports | Zhejiang Construction vs. Citic Offshore Helicopter | Zhejiang Construction vs. Jahen Household Products | Zhejiang Construction vs. Sportsoul Co Ltd |
| Dawning Information vs. Huaibei Mining Holdings | Dawning Information vs. AUPU Home Style | Dawning Information vs. Guangdong Silvere Sci | Dawning Information vs. Zhengzhou Coal Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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