Correlation Between Imeik Technology and Dazhong Transportation
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By analyzing existing cross correlation between Imeik Technology Development and Dazhong Transportation Group, you can compare the effects of market volatilities on Imeik Technology and Dazhong Transportation 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 Imeik Technology with a short position of Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imeik Technology and Dazhong Transportation.
Diversification Opportunities for Imeik Technology and Dazhong Transportation
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Imeik and Dazhong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Imeik Technology Development and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation and Imeik Technology 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 Imeik Technology Development are associated (or correlated) with Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Imeik Technology i.e., Imeik Technology and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Imeik Technology and Dazhong Transportation
Assuming the 90 days trading horizon Imeik Technology Development is expected to under-perform the Dazhong Transportation. But the stock apears to be less risky and, when comparing its historical volatility, Imeik Technology Development is 1.04 times less risky than Dazhong Transportation. The stock trades about -0.39 of its potential returns per unit of risk. The Dazhong Transportation Group is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Dazhong Transportation Group on October 25, 2024 and sell it today you would lose (1.00) from holding Dazhong Transportation Group or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imeik Technology Development vs. Dazhong Transportation Group
Performance |
| Timeline |
| Imeik Technology Dev |
| Dazhong Transportation |
Imeik Technology and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imeik Technology and Dazhong Transportation
The main advantage of trading using opposite Imeik Technology and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imeik Technology position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Imeik Technology vs. Anhui Jianghuai Automobile | Imeik Technology vs. Inspur Software Co | Imeik Technology vs. Linewell Software Co | Imeik Technology vs. Dhc Software Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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