Correlation Between Dirui Industrial and Autek China
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By analyzing existing cross correlation between Dirui Industrial Co and Autek China, you can compare the effects of market volatilities on Dirui Industrial and Autek China 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 Autek China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dirui Industrial and Autek China.
Diversification Opportunities for Dirui Industrial and Autek China
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dirui and Autek is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dirui Industrial Co and Autek China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autek China 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 Autek China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autek China has no effect on the direction of Dirui Industrial i.e., Dirui Industrial and Autek China go up and down completely randomly.
Pair Corralation between Dirui Industrial and Autek China
Assuming the 90 days trading horizon Dirui Industrial is expected to generate 1.15 times less return on investment than Autek China. But when comparing it to its historical volatility, Dirui Industrial Co is 1.14 times less risky than Autek China. It trades about 0.12 of its potential returns per unit of risk. Autek China is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,876 in Autek China on September 4, 2024 and sell it today you would earn a total of 125.00 from holding Autek China or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dirui Industrial Co vs. Autek China
Performance |
| Timeline |
| Dirui Industrial |
| Autek China |
Dirui Industrial and Autek China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dirui Industrial and Autek China
The main advantage of trading using opposite Dirui Industrial and Autek China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dirui Industrial position performs unexpectedly, Autek China 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 Autek China will offset losses from the drop in Autek China's long position.| Dirui Industrial vs. Harbin Hatou Investment | Dirui Industrial vs. Caihong Display Devices | Dirui Industrial vs. Luyin Investment Group | Dirui Industrial vs. Metro Investment Development |
| Autek China vs. Dalian Zeus Entertainment | Autek China vs. Beijing Bashi Media | Autek China vs. Dazhong Transportation Group | Autek China vs. Shanghai Broadband 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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