Correlation Between Dongguan Tarry and Aier Eye
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Aier Eye Hospital, you can compare the effects of market volatilities on Dongguan Tarry and Aier Eye 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 Aier Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Aier Eye.
Diversification Opportunities for Dongguan Tarry and Aier Eye
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongguan and Aier is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Aier Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aier Eye Hospital 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 Aier Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aier Eye Hospital has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and Aier Eye go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Aier Eye
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to generate 2.01 times more return on investment than Aier Eye. However, Dongguan Tarry is 2.01 times more volatile than Aier Eye Hospital. It trades about -0.15 of its potential returns per unit of risk. Aier Eye Hospital is currently generating about -0.35 per unit of risk. If you would invest 7,524 in Dongguan Tarry Electronics on October 21, 2024 and sell it today you would lose (834.00) from holding Dongguan Tarry Electronics or give up 11.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Aier Eye Hospital
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Aier Eye Hospital |
Dongguan Tarry and Aier Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Aier Eye
The main advantage of trading using opposite Dongguan Tarry and Aier Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, Aier Eye 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 Aier Eye will offset losses from the drop in Aier Eye's long position.| Dongguan Tarry vs. Tonghua Grape Wine | Dongguan Tarry vs. Jiangxi Hengda Hi Tech | Dongguan Tarry vs. Unisplendour Corp | Dongguan Tarry vs. Kuang Chi Technologies |
| Aier Eye vs. Juneyao Airlines | Aier Eye vs. GRG Banking Equipment | Aier Eye vs. Financial Street Holdings | Aier Eye vs. Jinhui Mining 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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