Correlation Between Sungrow Power and Dawning Information
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By analyzing existing cross correlation between Sungrow Power Supply and Dawning Information Industry, you can compare the effects of market volatilities on Sungrow Power and Dawning Information 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 Sungrow Power with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungrow Power and Dawning Information.
Diversification Opportunities for Sungrow Power and Dawning Information
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sungrow and Dawning is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sungrow Power Supply and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Sungrow Power 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 Sungrow Power Supply are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Sungrow Power i.e., Sungrow Power and Dawning Information go up and down completely randomly.
Pair Corralation between Sungrow Power and Dawning Information
Assuming the 90 days trading horizon Sungrow Power is expected to generate 4.43 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Sungrow Power Supply is 1.15 times less risky than Dawning Information. It trades about 0.02 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,299 in Dawning Information Industry on September 3, 2024 and sell it today you would earn a total of 6,181 from holding Dawning Information Industry or generate 268.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungrow Power Supply vs. Dawning Information Industry
Performance |
| Timeline |
| Sungrow Power Supply |
| Dawning Information |
Sungrow Power and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungrow Power and Dawning Information
The main advantage of trading using opposite Sungrow Power and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungrow Power position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Sungrow Power vs. Cultural Investment Holdings | Sungrow Power vs. Kunwu Jiuding Investment | Sungrow Power vs. Sunwave Communications Co | Sungrow Power vs. Luyin Investment Group |
| Dawning Information vs. Shanghai Xinhua Media | Dawning Information vs. Shanghai Metersbonwe FashionAccessories | Dawning Information vs. Guangdong Jingyi Metal | Dawning Information vs. Chengtun Mining 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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