Correlation Between DRLimited and Epoxy Base
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By analyzing existing cross correlation between DR Limited and Epoxy Base Electronic, you can compare the effects of market volatilities on DRLimited and Epoxy Base 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 DRLimited with a short position of Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of DRLimited and Epoxy Base.
Diversification Opportunities for DRLimited and Epoxy Base
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DRLimited and Epoxy is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding DR Limited and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic and DRLimited 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 DR Limited are associated (or correlated) with Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of DRLimited i.e., DRLimited and Epoxy Base go up and down completely randomly.
Pair Corralation between DRLimited and Epoxy Base
Assuming the 90 days trading horizon DR Limited is expected to generate 0.99 times more return on investment than Epoxy Base. However, DR Limited is 1.01 times less risky than Epoxy Base. It trades about 0.17 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.17 per unit of risk. If you would invest 2,173 in DR Limited on November 5, 2024 and sell it today you would earn a total of 215.00 from holding DR Limited or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DR Limited vs. Epoxy Base Electronic
Performance |
| Timeline |
| DR Limited |
| Epoxy Base Electronic |
DRLimited and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DRLimited and Epoxy Base
The main advantage of trading using opposite DRLimited and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DRLimited position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| DRLimited vs. Agricultural Bank of | DRLimited vs. Industrial and Commercial | DRLimited vs. Bank of China | DRLimited vs. PetroChina Co Ltd |
| Epoxy Base vs. Beijing YanDong MicroElectronic | Epoxy Base vs. Fuzhou Rockchip Electronics | Epoxy Base vs. Ningbo Tech Bank Co | Epoxy Base vs. Weihai Honglin Electronic |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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