Correlation Between Dongguan Aohai and Jiangsu Yanghe
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By analyzing existing cross correlation between Dongguan Aohai Technology and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Dongguan Aohai and Jiangsu Yanghe 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 Aohai with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and Jiangsu Yanghe.
Diversification Opportunities for Dongguan Aohai and Jiangsu Yanghe
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongguan and Jiangsu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Dongguan Aohai 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 Aohai Technology are associated (or correlated) with Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Dongguan Aohai i.e., Dongguan Aohai and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Dongguan Aohai and Jiangsu Yanghe
Assuming the 90 days trading horizon Dongguan Aohai Technology is expected to generate 4.66 times more return on investment than Jiangsu Yanghe. However, Dongguan Aohai is 4.66 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.23 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.11 per unit of risk. If you would invest 3,191 in Dongguan Aohai Technology on September 14, 2024 and sell it today you would earn a total of 804.00 from holding Dongguan Aohai Technology or generate 25.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Aohai Technology vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Dongguan Aohai Technology |
| Jiangsu Yanghe Brewery |
Dongguan Aohai and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Aohai and Jiangsu Yanghe
The main advantage of trading using opposite Dongguan Aohai and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Dongguan Aohai vs. Industrial and Commercial | Dongguan Aohai vs. Agricultural Bank of | Dongguan Aohai vs. China Construction Bank | Dongguan Aohai vs. Bank of China |
| Jiangsu Yanghe vs. Dongguan Aohai Technology | Jiangsu Yanghe vs. Northking Information Technology | Jiangsu Yanghe vs. ZYF Lopsking Aluminum | Jiangsu Yanghe vs. Kuangda Technology Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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