Correlation Between Dongguan Chitwing and Gem Year
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Gem Year Industrial Co, you can compare the effects of market volatilities on Dongguan Chitwing and Gem Year 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 Dongguan Chitwing with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Gem Year.
Diversification Opportunities for Dongguan Chitwing and Gem Year
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongguan and Gem is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing Technology and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Dongguan Chitwing 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 Dongguan Chitwing Technology are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Dongguan Chitwing i.e., Dongguan Chitwing and Gem Year go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Gem Year
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to under-perform the Gem Year. In addition to that, Dongguan Chitwing is 1.74 times more volatile than Gem Year Industrial Co. It trades about -0.05 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.03 per unit of volatility. If you would invest 440.00 in Gem Year Industrial Co on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Gem Year Industrial Co or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Gem Year Industrial Co
Performance |
| Timeline |
| Dongguan Chitwing |
| Gem Year Industrial |
Dongguan Chitwing and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Gem Year
The main advantage of trading using opposite Dongguan Chitwing and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Dongguan Chitwing vs. China Petroleum Chemical | Dongguan Chitwing vs. PetroChina Co Ltd | Dongguan Chitwing vs. China State Construction | Dongguan Chitwing vs. China Railway Group |
| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China Mobile Limited | Gem Year vs. CNOOC Limited | Gem Year vs. Ping An Insurance |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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