Correlation Between 159681 and Dongrui Food
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By analyzing existing cross correlation between 159681 and Dongrui Food Group, you can compare the effects of market volatilities on 159681 and Dongrui Food 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 159681 with a short position of Dongrui Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Dongrui Food.
Diversification Opportunities for 159681 and Dongrui Food
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159681 and Dongrui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Dongrui Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongrui Food Group and 159681 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 159681 are associated (or correlated) with Dongrui Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongrui Food Group has no effect on the direction of 159681 i.e., 159681 and Dongrui Food go up and down completely randomly.
Pair Corralation between 159681 and Dongrui Food
Assuming the 90 days trading horizon 159681 is expected to under-perform the Dongrui Food. In addition to that, 159681 is 1.17 times more volatile than Dongrui Food Group. It trades about -0.11 of its total potential returns per unit of risk. Dongrui Food Group is currently generating about 0.04 per unit of volatility. If you would invest 1,685 in Dongrui Food Group on September 14, 2024 and sell it today you would earn a total of 21.00 from holding Dongrui Food Group or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Dongrui Food Group
Performance |
| Timeline |
| 159681 |
| Dongrui Food Group |
159681 and Dongrui Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Dongrui Food
The main advantage of trading using opposite 159681 and Dongrui Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Dongrui Food 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 Dongrui Food will offset losses from the drop in Dongrui Food's long position.The idea behind 159681 and Dongrui Food Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dongrui Food vs. New China Life | Dongrui Food vs. Ming Yang Smart | Dongrui Food vs. 159681 | Dongrui Food vs. 159005 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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