Correlation Between Dongguan Tarry and China Securities
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By analyzing existing cross correlation between Dongguan Tarry Electronics and China Securities 800, you can compare the effects of market volatilities on Dongguan Tarry and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and China Securities.
Diversification Opportunities for Dongguan Tarry and China Securities
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongguan and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and China Securities go up and down completely randomly.
Pair Corralation between Dongguan Tarry and China Securities
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to under-perform the China Securities. In addition to that, Dongguan Tarry is 4.34 times more volatile than China Securities 800. It trades about -0.11 of its total potential returns per unit of risk. China Securities 800 is currently generating about -0.3 per unit of volatility. If you would invest 424,293 in China Securities 800 on October 16, 2024 and sell it today you would lose (25,124) from holding China Securities 800 or give up 5.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. China Securities 800
Performance |
| Timeline |
Dongguan Tarry and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Dongguan Tarry Electronics
Pair trading matchups for Dongguan Tarry
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Dongguan Tarry and China Securities
The main advantage of trading using opposite Dongguan Tarry and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Dongguan Tarry vs. Shenzhen AV Display Co | Dongguan Tarry vs. Qingdao Haier Biomedical | Dongguan Tarry vs. Everdisplay Optronics Shanghai | Dongguan Tarry vs. Eyebright Medical Technology |
| China Securities vs. Eastroc Beverage Group | China Securities vs. Sinomach General Machinery | China Securities vs. Hongrun Construction Group | China Securities vs. Great Sun Foods 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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