Correlation Between Digiwin Software and Xinjiang Zhongtai
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By analyzing existing cross correlation between Digiwin Software Co and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Digiwin Software and Xinjiang Zhongtai 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 Digiwin Software with a short position of Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digiwin Software and Xinjiang Zhongtai.
Diversification Opportunities for Digiwin Software and Xinjiang Zhongtai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Digiwin and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Digiwin Software Co and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai and Digiwin Software 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 Digiwin Software Co are associated (or correlated) with Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Digiwin Software i.e., Digiwin Software and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Digiwin Software and Xinjiang Zhongtai
Assuming the 90 days trading horizon Digiwin Software Co is expected to generate 2.83 times more return on investment than Xinjiang Zhongtai. However, Digiwin Software is 2.83 times more volatile than Xinjiang Zhongtai Chemical. It trades about 0.18 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.13 per unit of risk. If you would invest 2,579 in Digiwin Software Co on September 13, 2024 and sell it today you would earn a total of 554.00 from holding Digiwin Software Co or generate 21.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digiwin Software Co vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Digiwin Software |
| Xinjiang Zhongtai |
Digiwin Software and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digiwin Software and Xinjiang Zhongtai
The main advantage of trading using opposite Digiwin Software and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digiwin Software position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Digiwin Software vs. Ming Yang Smart | Digiwin Software vs. 159681 | Digiwin Software vs. 159005 | Digiwin Software vs. Loctek Ergonomic Technology |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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