Correlation Between Dongguan Tarry and XinJiang GuoTong
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By analyzing existing cross correlation between Dongguan Tarry Electronics and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Dongguan Tarry and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and XinJiang GuoTong.
Diversification Opportunities for Dongguan Tarry and XinJiang GuoTong
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongguan and XinJiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Dongguan Tarry and XinJiang GuoTong
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to generate 1.12 times more return on investment than XinJiang GuoTong. However, Dongguan Tarry is 1.12 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.04 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.01 per unit of risk. If you would invest 5,011 in Dongguan Tarry Electronics on October 16, 2024 and sell it today you would earn a total of 1,233 from holding Dongguan Tarry Electronics or generate 24.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Dongguan Tarry Elect |
| XinJiang GuoTong Pipeline |
Dongguan Tarry and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and XinJiang GuoTong
The main advantage of trading using opposite Dongguan Tarry and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's 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 |
| XinJiang GuoTong vs. JuneYao Dairy Co | XinJiang GuoTong vs. Shanghai Ziyan Foods | XinJiang GuoTong vs. Zhengzhou Qianweiyangchu Food | XinJiang GuoTong vs. Suzhou Weizhixiang Food |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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