Correlation Between Dongguan Aohai and Der International
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By analyzing existing cross correlation between Dongguan Aohai Technology and Der International Home, you can compare the effects of market volatilities on Dongguan Aohai and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and Der International.
Diversification Opportunities for Dongguan Aohai and Der International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Der is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Dongguan Aohai i.e., Dongguan Aohai and Der International go up and down completely randomly.
Pair Corralation between Dongguan Aohai and Der International
Assuming the 90 days trading horizon Dongguan Aohai Technology is expected to generate 0.88 times more return on investment than Der International. However, Dongguan Aohai Technology is 1.13 times less risky than Der International. It trades about 0.26 of its potential returns per unit of risk. Der International Home is currently generating about -0.07 per unit of risk. If you would invest 3,251 in Dongguan Aohai Technology on September 27, 2024 and sell it today you would earn a total of 801.00 from holding Dongguan Aohai Technology or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Aohai Technology vs. Der International Home
Performance |
| Timeline |
| Dongguan Aohai Technology |
| Der International Home |
Dongguan Aohai and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Aohai and Der International
The main advantage of trading using opposite Dongguan Aohai and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Dongguan Aohai vs. Pengxin International Mining | Dongguan Aohai vs. Guocheng Mining Co | Dongguan Aohai vs. Zhangjiagang Freetrade Science | Dongguan Aohai vs. Chongqing Changan Automobile |
| Der International vs. Youyou Foods Co | Der International vs. Shantou Wanshun Package | Der International vs. Muyuan Foodstuff Co | Der International vs. Huasi Agricultural Development |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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