Correlation Between Chengdu Spaceon and DO Home
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and DO Home Collection, you can compare the effects of market volatilities on Chengdu Spaceon and DO Home 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 Chengdu Spaceon with a short position of DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and DO Home.
Diversification Opportunities for Chengdu Spaceon and DO Home
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and 002798 is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection and Chengdu Spaceon 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 Chengdu Spaceon Electronics are associated (or correlated) with DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and DO Home go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and DO Home
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 1.84 times less return on investment than DO Home. But when comparing it to its historical volatility, Chengdu Spaceon Electronics is 1.87 times less risky than DO Home. It trades about 0.13 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 347.00 in DO Home Collection on November 5, 2024 and sell it today you would earn a total of 21.00 from holding DO Home Collection or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. DO Home Collection
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| DO Home Collection |
Chengdu Spaceon and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and DO Home
The main advantage of trading using opposite Chengdu Spaceon and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Chengdu Spaceon vs. Industrial and Commercial | Chengdu Spaceon vs. Kweichow Moutai Co | Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon vs. China Mobile Limited |
| DO Home vs. China Asset Management | DO Home vs. Miracll Chemicals Co | DO Home vs. Nantong Haixing Electronics | DO Home vs. Cicc Fund Management |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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