Correlation Between DO Home and Hangzhou Pinming
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By analyzing existing cross correlation between DO Home Collection and Hangzhou Pinming Software, you can compare the effects of market volatilities on DO Home and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Hangzhou Pinming.
Diversification Opportunities for DO Home and Hangzhou Pinming
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002798 and Hangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of DO Home i.e., DO Home and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between DO Home and Hangzhou Pinming
Assuming the 90 days trading horizon DO Home Collection is expected to generate 1.72 times more return on investment than Hangzhou Pinming. However, DO Home is 1.72 times more volatile than Hangzhou Pinming Software. It trades about -0.07 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about -0.15 per unit of risk. If you would invest 393.00 in DO Home Collection on October 25, 2024 and sell it today you would lose (35.00) from holding DO Home Collection or give up 8.91% 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. Hangzhou Pinming Software
Performance |
| Timeline |
| DO Home Collection |
| Hangzhou Pinming Software |
DO Home and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Hangzhou Pinming
The main advantage of trading using opposite DO Home and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| DO Home vs. Kweichow Moutai Co | DO Home vs. Contemporary Amperex Technology | DO Home vs. Beijing Roborock Technology | DO Home vs. BYD Co Ltd |
| Hangzhou Pinming vs. Kweichow Moutai Co | Hangzhou Pinming vs. NAURA Technology Group | Hangzhou Pinming vs. APT Medical | Hangzhou Pinming vs. BYD Co Ltd |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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