Correlation Between DO Home and Invengo Information
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By analyzing existing cross correlation between DO Home Collection and Invengo Information Technology, you can compare the effects of market volatilities on DO Home and Invengo 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 DO Home with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Invengo Information.
Diversification Opportunities for DO Home and Invengo Information
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002798 and Invengo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and DO Home 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 DO Home Collection are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of DO Home i.e., DO Home and Invengo Information go up and down completely randomly.
Pair Corralation between DO Home and Invengo Information
Assuming the 90 days trading horizon DO Home is expected to generate 1.35 times less return on investment than Invengo Information. But when comparing it to its historical volatility, DO Home Collection is 1.34 times less risky than Invengo Information. It trades about 0.21 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Invengo Information Technology on September 12, 2024 and sell it today you would earn a total of 259.00 from holding Invengo Information Technology or generate 65.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
DO Home Collection vs. Invengo Information Technology
Performance |
| Timeline |
| DO Home Collection |
| Invengo Information |
DO Home and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Invengo Information
The main advantage of trading using opposite DO Home and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, Invengo 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| DO Home vs. PetroChina Co Ltd | DO Home vs. China Mobile Limited | DO Home vs. CNOOC Limited | DO Home vs. Ping An Insurance |
| Invengo Information vs. Industrial and Commercial | Invengo Information vs. Agricultural Bank of | Invengo Information vs. China Construction Bank | Invengo Information vs. Bank of China |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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