Correlation Between Dongguan Tarry and Hangzhou Arcvideo
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Hangzhou Arcvideo Technology, you can compare the effects of market volatilities on Dongguan Tarry and Hangzhou Arcvideo 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 Hangzhou Arcvideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Hangzhou Arcvideo.
Diversification Opportunities for Dongguan Tarry and Hangzhou Arcvideo
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongguan and Hangzhou is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry Electronics and Hangzhou Arcvideo Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Arcvideo 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 Hangzhou Arcvideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Arcvideo has no effect on the direction of Dongguan Tarry i.e., Dongguan Tarry and Hangzhou Arcvideo go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Hangzhou Arcvideo
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to generate 0.66 times more return on investment than Hangzhou Arcvideo. However, Dongguan Tarry Electronics is 1.51 times less risky than Hangzhou Arcvideo. It trades about 0.03 of its potential returns per unit of risk. Hangzhou Arcvideo Technology is currently generating about 0.02 per unit of risk. If you would invest 5,230 in Dongguan Tarry Electronics on October 16, 2024 and sell it today you would earn a total of 1,014 from holding Dongguan Tarry Electronics or generate 19.39% 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. Hangzhou Arcvideo Technology
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Hangzhou Arcvideo |
Dongguan Tarry and Hangzhou Arcvideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Hangzhou Arcvideo
The main advantage of trading using opposite Dongguan Tarry and Hangzhou Arcvideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry position performs unexpectedly, Hangzhou Arcvideo 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 Hangzhou Arcvideo will offset losses from the drop in Hangzhou Arcvideo'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 |
| Hangzhou Arcvideo vs. Guangzhou Zhujiang Brewery | Hangzhou Arcvideo vs. Beijing Yanjing Brewery | Hangzhou Arcvideo vs. Eastroc Beverage Group | Hangzhou Arcvideo vs. Xinjiang Baodi Mining |
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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