Correlation Between Dirui Industrial and Shenzhen Centralcon
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By analyzing existing cross correlation between Dirui Industrial Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Dirui Industrial and Shenzhen Centralcon 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 Dirui Industrial with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dirui Industrial and Shenzhen Centralcon.
Diversification Opportunities for Dirui Industrial and Shenzhen Centralcon
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dirui and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dirui Industrial Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Dirui Industrial 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 Dirui Industrial Co are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Dirui Industrial i.e., Dirui Industrial and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Dirui Industrial and Shenzhen Centralcon
Assuming the 90 days trading horizon Dirui Industrial Co is expected to under-perform the Shenzhen Centralcon. But the stock apears to be less risky and, when comparing its historical volatility, Dirui Industrial Co is 1.33 times less risky than Shenzhen Centralcon. The stock trades about -0.36 of its potential returns per unit of risk. The Shenzhen Centralcon Investment is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 508.00 in Shenzhen Centralcon Investment on October 24, 2024 and sell it today you would lose (54.00) from holding Shenzhen Centralcon Investment or give up 10.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dirui Industrial Co vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Dirui Industrial |
| Shenzhen Centralcon |
Dirui Industrial and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dirui Industrial and Shenzhen Centralcon
The main advantage of trading using opposite Dirui Industrial and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dirui Industrial position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Dirui Industrial vs. Shenzhen Centralcon Investment | Dirui Industrial vs. Giantec Semiconductor Corp | Dirui Industrial vs. Beijing Mainstreets Investment | Dirui Industrial vs. Ingenic Semiconductor |
| Shenzhen Centralcon vs. Mango Excellent Media | Shenzhen Centralcon vs. Tonghua Grape Wine | Shenzhen Centralcon vs. Guangzhou Jinyi Media | Shenzhen Centralcon vs. Gansu Huangtai Wine marketing |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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