Correlation Between Dongguan Aohai and Tianjin LVYIN
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By analyzing existing cross correlation between Dongguan Aohai Technology and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Dongguan Aohai and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and Tianjin LVYIN.
Diversification Opportunities for Dongguan Aohai and Tianjin LVYIN
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongguan and Tianjin is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Dongguan Aohai i.e., Dongguan Aohai and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Dongguan Aohai and Tianjin LVYIN
Assuming the 90 days trading horizon Dongguan Aohai Technology is expected to generate 1.14 times more return on investment than Tianjin LVYIN. However, Dongguan Aohai is 1.14 times more volatile than Tianjin LVYIN Landscape. It trades about 0.02 of its potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.01 per unit of risk. If you would invest 3,571 in Dongguan Aohai Technology on October 15, 2024 and sell it today you would earn a total of 231.00 from holding Dongguan Aohai Technology or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Aohai Technology vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Dongguan Aohai Technology |
| Tianjin LVYIN Landscape |
Dongguan Aohai and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Aohai and Tianjin LVYIN
The main advantage of trading using opposite Dongguan Aohai and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Dongguan Aohai vs. Shanghai Broadband Technology | Dongguan Aohai vs. Dazhong Transportation Group | Dongguan Aohai vs. Yingde Greatchem Chemicals | Dongguan Aohai vs. Chongqing Road Bridge |
| Tianjin LVYIN vs. Shandong Rike Chemical | Tianjin LVYIN vs. Longxing Chemical Stock | Tianjin LVYIN vs. Shenzhen Noposion Agrochemicals | Tianjin LVYIN vs. Ningxia Younglight Chemicals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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