Correlation Between DO Home and China Express
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By analyzing existing cross correlation between DO Home Collection and China Express Airlines, you can compare the effects of market volatilities on DO Home and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and China Express.
Diversification Opportunities for DO Home and China Express
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002798 and China is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of DO Home i.e., DO Home and China Express go up and down completely randomly.
Pair Corralation between DO Home and China Express
Assuming the 90 days trading horizon DO Home Collection is expected to generate 1.48 times more return on investment than China Express. However, DO Home is 1.48 times more volatile than China Express Airlines. It trades about 0.2 of its potential returns per unit of risk. China Express Airlines is currently generating about -0.09 per unit of risk. If you would invest 400.00 in DO Home Collection on September 5, 2024 and sell it today you would earn a total of 56.00 from holding DO Home Collection or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. China Express Airlines
Performance |
| Timeline |
| DO Home Collection |
| China Express Airlines |
DO Home and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and China Express
The main advantage of trading using opposite DO Home and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| DO Home vs. Agricultural Bank of | DO Home vs. Industrial and Commercial | DO Home vs. Bank of China | DO Home vs. China Construction Bank |
| China Express vs. Agricultural Bank of | China Express vs. Industrial and Commercial | China Express vs. Bank of China | China Express vs. China Construction Bank |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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