Correlation Between Dongguan Chitwing and Zhongtong Guomai
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Dongguan Chitwing and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Zhongtong Guomai.
Diversification Opportunities for Dongguan Chitwing and Zhongtong Guomai
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Zhongtong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing Technology and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Dongguan Chitwing i.e., Dongguan Chitwing and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Zhongtong Guomai
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to under-perform the Zhongtong Guomai. In addition to that, Dongguan Chitwing is 1.12 times more volatile than Zhongtong Guomai Communication. It trades about -0.05 of its total potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.09 per unit of volatility. If you would invest 1,048 in Zhongtong Guomai Communication on September 1, 2024 and sell it today you would earn a total of 73.00 from holding Zhongtong Guomai Communication or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Dongguan Chitwing |
| Zhongtong Guomai Com |
Dongguan Chitwing and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Zhongtong Guomai
The main advantage of trading using opposite Dongguan Chitwing and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai'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 |
| Zhongtong Guomai vs. Chengdu B ray Media | Zhongtong Guomai vs. Mango Excellent Media | Zhongtong Guomai vs. Focus Media Information | Zhongtong Guomai vs. JiShi Media Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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