Correlation Between CSG Holding and Dhc Software
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By analyzing existing cross correlation between CSG Holding Co and Dhc Software Co, you can compare the effects of market volatilities on CSG Holding and Dhc Software 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 CSG Holding with a short position of Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Holding and Dhc Software.
Diversification Opportunities for CSG Holding and Dhc Software
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CSG and Dhc is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CSG Holding Co and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software and CSG Holding 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 CSG Holding Co are associated (or correlated) with Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of CSG Holding i.e., CSG Holding and Dhc Software go up and down completely randomly.
Pair Corralation between CSG Holding and Dhc Software
Assuming the 90 days trading horizon CSG Holding Co is expected to under-perform the Dhc Software. But the stock apears to be less risky and, when comparing its historical volatility, CSG Holding Co is 1.12 times less risky than Dhc Software. The stock trades about -0.27 of its potential returns per unit of risk. The Dhc Software Co is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 764.00 in Dhc Software Co on October 25, 2024 and sell it today you would lose (68.00) from holding Dhc Software Co or give up 8.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Holding Co vs. Dhc Software Co
Performance |
| Timeline |
| CSG Holding |
| Dhc Software |
CSG Holding and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Holding and Dhc Software
The main advantage of trading using opposite CSG Holding and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Holding position performs unexpectedly, Dhc Software 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| CSG Holding vs. Super Dragon Engineering Plastics | CSG Holding vs. Suzhou Xingye Material | CSG Holding vs. Western Metal Materials | CSG Holding vs. Swancor Advanced Materials |
| Dhc Software vs. Anhui Guofeng Plastic | Dhc Software vs. Ningbo Tip Rubber | Dhc Software vs. Super Dragon Engineering Plastics | Dhc Software vs. Qingdao Choho Industrial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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