Correlation Between DO Home and Guangdong Transtek
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By analyzing existing cross correlation between DO Home Collection and Guangdong Transtek Medical, you can compare the effects of market volatilities on DO Home and Guangdong Transtek 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 Guangdong Transtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Guangdong Transtek.
Diversification Opportunities for DO Home and Guangdong Transtek
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002798 and Guangdong is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Guangdong Transtek Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Transtek 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 Guangdong Transtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Transtek has no effect on the direction of DO Home i.e., DO Home and Guangdong Transtek go up and down completely randomly.
Pair Corralation between DO Home and Guangdong Transtek
Assuming the 90 days trading horizon DO Home Collection is expected to generate 1.48 times more return on investment than Guangdong Transtek. However, DO Home is 1.48 times more volatile than Guangdong Transtek Medical. It trades about -0.05 of its potential returns per unit of risk. Guangdong Transtek Medical is currently generating about -0.25 per unit of risk. If you would invest 397.00 in DO Home Collection on October 27, 2024 and sell it today you would lose (30.00) from holding DO Home Collection or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. Guangdong Transtek Medical
Performance |
| Timeline |
| DO Home Collection |
| Guangdong Transtek |
DO Home and Guangdong Transtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Guangdong Transtek
The main advantage of trading using opposite DO Home and Guangdong Transtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, Guangdong Transtek 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 Guangdong Transtek will offset losses from the drop in Guangdong Transtek's long position.| DO Home vs. Allgens Medical Technology | DO Home vs. Cicc Fund Management | DO Home vs. JCHX Mining Management | DO Home vs. Chengdu Spaceon Electronics |
| Guangdong Transtek vs. Agricultural Bank of | Guangdong Transtek vs. Industrial and Commercial | Guangdong Transtek vs. Bank of China | Guangdong Transtek 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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