Correlation Between DO Home and Jiangsu Yueda
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By analyzing existing cross correlation between DO Home Collection and Jiangsu Yueda Investment, you can compare the effects of market volatilities on DO Home and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Jiangsu Yueda.
Diversification Opportunities for DO Home and Jiangsu Yueda
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 002798 and Jiangsu is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of DO Home i.e., DO Home and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between DO Home and Jiangsu Yueda
Assuming the 90 days trading horizon DO Home Collection is expected to generate 1.16 times more return on investment than Jiangsu Yueda. However, DO Home is 1.16 times more volatile than Jiangsu Yueda Investment. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.12 per unit of risk. If you would invest 373.00 in DO Home Collection on January 24, 2025 and sell it today you would earn a total of 20.00 from holding DO Home Collection or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DO Home Collection vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| DO Home Collection |
| Jiangsu Yueda Investment |
DO Home and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Jiangsu Yueda
The main advantage of trading using opposite DO Home and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| DO Home vs. Dymatic Chemicals | DO Home vs. North Chemical Industries | DO Home vs. Longxing Chemical Stock | DO Home vs. Jiangsu Yanghe Brewery |
| Jiangsu Yueda vs. Datang Telecom Technology | Jiangsu Yueda vs. Fujian Newland Computer | Jiangsu Yueda vs. Juneyao Airlines | Jiangsu Yueda vs. Sunny Loan Top |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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