Correlation Between Yingde Greatchem and Dongguan Aohai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yingde Greatchem Chemicals and Dongguan Aohai Technology, you can compare the effects of market volatilities on Yingde Greatchem and Dongguan Aohai 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 Yingde Greatchem with a short position of Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Dongguan Aohai.
Diversification Opportunities for Yingde Greatchem and Dongguan Aohai
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yingde and Dongguan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Dongguan Aohai go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Dongguan Aohai
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Dongguan Aohai. In addition to that, Yingde Greatchem is 1.03 times more volatile than Dongguan Aohai Technology. It trades about -0.03 of its total potential returns per unit of risk. Dongguan Aohai Technology is currently generating about 0.02 per unit of volatility. If you would invest 3,571 in Dongguan Aohai Technology on October 16, 2024 and sell it today you would earn a total of 223.00 from holding Dongguan Aohai Technology or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.08% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Dongguan Aohai Technology
Performance |
| Timeline |
| Yingde Greatchem Che |
| Dongguan Aohai Technology |
Yingde Greatchem and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Dongguan Aohai
The main advantage of trading using opposite Yingde Greatchem and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai's long position.| Yingde Greatchem vs. Guangdong Qunxing Toys | Yingde Greatchem vs. Longjian Road Bridge | Yingde Greatchem vs. Fujian Longzhou Transportation | Yingde Greatchem vs. Road Environment Technology |
| Dongguan Aohai vs. China Petroleum Chemical | Dongguan Aohai vs. PetroChina Co Ltd | Dongguan Aohai vs. China State Construction | Dongguan Aohai vs. China Railway Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |