Correlation Between DO Home and Nantong Haixing
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By analyzing existing cross correlation between DO Home Collection and Nantong Haixing Electronics, you can compare the effects of market volatilities on DO Home and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Nantong Haixing.
Diversification Opportunities for DO Home and Nantong Haixing
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002798 and Nantong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of DO Home i.e., DO Home and Nantong Haixing go up and down completely randomly.
Pair Corralation between DO Home and Nantong Haixing
Assuming the 90 days trading horizon DO Home Collection is expected to under-perform the Nantong Haixing. In addition to that, DO Home is 2.76 times more volatile than Nantong Haixing Electronics. It trades about -0.24 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.23 per unit of volatility. If you would invest 1,395 in Nantong Haixing Electronics on October 12, 2024 and sell it today you would lose (123.00) from holding Nantong Haixing Electronics or give up 8.82% 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. Nantong Haixing Electronics
Performance |
| Timeline |
| DO Home Collection |
| Nantong Haixing Elec |
DO Home and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Nantong Haixing
The main advantage of trading using opposite DO Home and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| DO Home vs. Chison Medical Technologies | DO Home vs. Tinavi Medical Technologies | DO Home vs. Chengdu B ray Media | DO Home vs. Threes Company Media |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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