Correlation Between Dongguan Chitwing and Ye Chiu
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Ye Chiu Metal, you can compare the effects of market volatilities on Dongguan Chitwing and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Ye Chiu.
Diversification Opportunities for Dongguan Chitwing and Ye Chiu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongguan and 601388 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing Technology and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Dongguan Chitwing i.e., Dongguan Chitwing and Ye Chiu go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Ye Chiu
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to under-perform the Ye Chiu. In addition to that, Dongguan Chitwing is 1.37 times more volatile than Ye Chiu Metal. It trades about -0.01 of its total potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.01 per unit of volatility. If you would invest 268.00 in Ye Chiu Metal on August 29, 2024 and sell it today you would lose (7.00) from holding Ye Chiu Metal or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Ye Chiu Metal
Performance |
| Timeline |
| Dongguan Chitwing |
| Ye Chiu Metal |
Dongguan Chitwing and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Ye Chiu
The main advantage of trading using opposite Dongguan Chitwing and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Dongguan Chitwing vs. Agricultural Bank of | Dongguan Chitwing vs. Industrial and Commercial | Dongguan Chitwing vs. Bank of China | Dongguan Chitwing vs. PetroChina Co Ltd |
| Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Shandong Gold Mining | Ye Chiu vs. Rongsheng Petrochemical Co | Ye Chiu vs. Inner Mongolia BaoTou |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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