Correlation Between Dongguan Tarry and Citic Offshore
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Citic Offshore Helicopter, you can compare the effects of market volatilities on Dongguan Tarry and Citic Offshore 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 Dongguan Tarry with a short position of Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Citic Offshore.
Diversification Opportunities for Dongguan Tarry and Citic Offshore
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dongguan and Citic is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter and Dongguan Tarry 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 Dongguan Tarry Electronics are associated (or correlated) with Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and Citic Offshore go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Citic Offshore
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to generate 1.15 times more return on investment than Citic Offshore. However, Dongguan Tarry is 1.15 times more volatile than Citic Offshore Helicopter. It trades about 0.03 of its potential returns per unit of risk. Citic Offshore Helicopter is currently generating about -0.08 per unit of risk. If you would invest 6,618 in Dongguan Tarry Electronics on October 18, 2024 and sell it today you would earn a total of 49.00 from holding Dongguan Tarry Electronics or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Citic Offshore Helicopter
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Citic Offshore Helicopter |
Dongguan Tarry and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Citic Offshore
The main advantage of trading using opposite Dongguan Tarry and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, Citic Offshore 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 Citic Offshore will offset losses from the drop in Citic Offshore's long position.| Dongguan Tarry vs. Songz Automobile Air | Dongguan Tarry vs. Jiangsu Xinri E Vehicle | Dongguan Tarry vs. Xiangyang Automobile Bearing | Dongguan Tarry vs. Guangdong Jinma Entertainment |
| Citic Offshore vs. Dongguan Tarry Electronics | Citic Offshore vs. Nantong Haixing Electronics | Citic Offshore vs. Xinya Electronic Co | Citic Offshore vs. Zhongrun Resources Investment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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