Correlation Between Dongnan Electronics and V V
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By analyzing existing cross correlation between Dongnan Electronics Co and V V Food, you can compare the effects of market volatilities on Dongnan Electronics and V V 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 Dongnan Electronics with a short position of V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and V V.
Diversification Opportunities for Dongnan Electronics and V V
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongnan and 600300 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics Co and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food and Dongnan Electronics 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 Dongnan Electronics Co are associated (or correlated) with V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Dongnan Electronics i.e., Dongnan Electronics and V V go up and down completely randomly.
Pair Corralation between Dongnan Electronics and V V
Assuming the 90 days trading horizon Dongnan Electronics is expected to generate 1.81 times less return on investment than V V. But when comparing it to its historical volatility, Dongnan Electronics Co is 1.09 times less risky than V V. It trades about 0.08 of its potential returns per unit of risk. V V Food is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 350.00 in V V Food on January 26, 2025 and sell it today you would earn a total of 46.00 from holding V V Food or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. V V Food
Performance |
| Timeline |
| Dongnan Electronics |
| V V Food |
Dongnan Electronics and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and V V
The main advantage of trading using opposite Dongnan Electronics and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| Dongnan Electronics vs. Fujian Nanwang Environment | Dongnan Electronics vs. Elite Color Environmental | Dongnan Electronics vs. Sinocat Environmental Technology | Dongnan Electronics vs. Guilin Seamild Foods |
| V V vs. Jiahe Foods Industry | V V vs. Jinzai Food Group | V V vs. Shenyang Chemical Industry | V V vs. Nanning Chemical Industry |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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