Correlation Between Strait Innovation and Dongxing Sec
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By analyzing existing cross correlation between Strait Innovation Internet and Dongxing Sec Co, you can compare the effects of market volatilities on Strait Innovation and Dongxing Sec 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 Strait Innovation with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Dongxing Sec.
Diversification Opportunities for Strait Innovation and Dongxing Sec
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strait and Dongxing is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Strait Innovation 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 Strait Innovation Internet are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Strait Innovation i.e., Strait Innovation and Dongxing Sec go up and down completely randomly.
Pair Corralation between Strait Innovation and Dongxing Sec
Assuming the 90 days trading horizon Strait Innovation Internet is expected to generate 1.27 times more return on investment than Dongxing Sec. However, Strait Innovation is 1.27 times more volatile than Dongxing Sec Co. It trades about 0.26 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.15 per unit of risk. If you would invest 249.00 in Strait Innovation Internet on November 4, 2024 and sell it today you would earn a total of 34.00 from holding Strait Innovation Internet or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strait Innovation Internet vs. Dongxing Sec Co
Performance |
| Timeline |
| Strait Innovation |
| Dongxing Sec |
Strait Innovation and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strait Innovation and Dongxing Sec
The main advantage of trading using opposite Strait Innovation and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Strait Innovation vs. Ping An Insurance | Strait Innovation vs. Ningbo Jintian Copper | Strait Innovation vs. Hainan Mining Co | Strait Innovation vs. Guangzhou Restaurants Group |
| Dongxing Sec vs. Penyao Environmental Protection | Dongxing Sec vs. GuoChuang Software Co | Dongxing Sec vs. Jiangsu Hoperun Software | Dongxing Sec vs. Inspur Software Co |
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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