Correlation Between Digiwin Software and Chengdu Kanghua
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By analyzing existing cross correlation between Digiwin Software Co and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Digiwin Software and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digiwin Software and Chengdu Kanghua.
Diversification Opportunities for Digiwin Software and Chengdu Kanghua
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Digiwin and Chengdu is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Digiwin Software Co and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Digiwin Software i.e., Digiwin Software and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Digiwin Software and Chengdu Kanghua
Assuming the 90 days trading horizon Digiwin Software Co is expected to generate 3.38 times more return on investment than Chengdu Kanghua. However, Digiwin Software is 3.38 times more volatile than Chengdu Kanghua Biological. It trades about 0.18 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.28 per unit of risk. If you would invest 2,756 in Digiwin Software Co on October 30, 2024 and sell it today you would earn a total of 536.00 from holding Digiwin Software Co or generate 19.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digiwin Software Co vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Digiwin Software |
| Chengdu Kanghua Biol |
Digiwin Software and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digiwin Software and Chengdu Kanghua
The main advantage of trading using opposite Digiwin Software and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digiwin Software position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Digiwin Software vs. China State Construction | Digiwin Software vs. Poly Real Estate | Digiwin Software vs. China Vanke Co | Digiwin Software vs. China Merchants Shekou |
| Chengdu Kanghua vs. Quectel Wireless Solutions | Chengdu Kanghua vs. Harbin Air Conditioning | Chengdu Kanghua vs. Jilin Jlu Communication | Chengdu Kanghua vs. Eyebright Medical Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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