Correlation Between Dongguan Tarry and Hubeiyichang Transportation
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Dongguan Tarry and Hubeiyichang 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 Dongguan Tarry with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Hubeiyichang Transportation.
Diversification Opportunities for Dongguan Tarry and Hubeiyichang Transportation
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongguan and Hubeiyichang is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Hubeiyichang Transportation
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to generate 2.13 times more return on investment than Hubeiyichang Transportation. However, Dongguan Tarry is 2.13 times more volatile than Hubeiyichang Transportation Group. It trades about 0.05 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.24 per unit of risk. If you would invest 6,302 in Dongguan Tarry Electronics on October 11, 2024 and sell it today you would earn a total of 162.00 from holding Dongguan Tarry Electronics or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Hubeiyichang Transportation |
Dongguan Tarry and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Hubeiyichang Transportation
The main advantage of trading using opposite Dongguan Tarry and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, Hubeiyichang 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Dongguan Tarry vs. Longjian Road Bridge | Dongguan Tarry vs. Hubeiyichang Transportation Group | Dongguan Tarry vs. Citic Guoan Wine | Dongguan Tarry vs. Anhui Gujing Distillery |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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