Correlation Between Jiangsu Hoperun and Dawning Information
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Dawning Information Industry, you can compare the effects of market volatilities on Jiangsu Hoperun 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 Jiangsu Hoperun with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Dawning Information.
Diversification Opportunities for Jiangsu Hoperun and Dawning Information
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Dawning is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Jiangsu Hoperun 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 Jiangsu Hoperun Software 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 Jiangsu Hoperun i.e., Jiangsu Hoperun and Dawning Information go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Dawning Information
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to generate 1.22 times more return on investment than Dawning Information. However, Jiangsu Hoperun is 1.22 times more volatile than Dawning Information Industry. It trades about -0.15 of its potential returns per unit of risk. Dawning Information Industry is currently generating about -0.19 per unit of risk. If you would invest 6,061 in Jiangsu Hoperun Software on October 30, 2024 and sell it today you would lose (1,279) from holding Jiangsu Hoperun Software or give up 21.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Dawning Information Industry
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Dawning Information |
Jiangsu Hoperun and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Dawning Information
The main advantage of trading using opposite Jiangsu Hoperun and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun 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.| Jiangsu Hoperun vs. Runjian Communication Co | Jiangsu Hoperun vs. Wuhan Yangtze Communication | Jiangsu Hoperun vs. Guangdong Ellington Electronics | Jiangsu Hoperun vs. Epoxy Base Electronic |
| Dawning Information vs. Ziel Home Furnishing | Dawning Information vs. DO Home Collection | Dawning Information vs. Xiamen Goldenhome Co | Dawning Information vs. Anhui Huaren Health |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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