Correlation Between Dongnan Electronics and Grandblue Environment
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By analyzing existing cross correlation between Dongnan Electronics Co and Grandblue Environment Co, you can compare the effects of market volatilities on Dongnan Electronics and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and Grandblue Environment.
Diversification Opportunities for Dongnan Electronics and Grandblue Environment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongnan and Grandblue is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics Co and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Dongnan Electronics i.e., Dongnan Electronics and Grandblue Environment go up and down completely randomly.
Pair Corralation between Dongnan Electronics and Grandblue Environment
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to generate 2.7 times more return on investment than Grandblue Environment. However, Dongnan Electronics is 2.7 times more volatile than Grandblue Environment Co. It trades about 0.02 of its potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.05 per unit of risk. If you would invest 2,159 in Dongnan Electronics Co on September 25, 2024 and sell it today you would earn a total of 140.00 from holding Dongnan Electronics Co or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. Grandblue Environment Co
Performance |
| Timeline |
| Dongnan Electronics |
| Grandblue Environment |
Dongnan Electronics and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and Grandblue Environment
The main advantage of trading using opposite Dongnan Electronics and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| Dongnan Electronics vs. Kweichow Moutai Co | Dongnan Electronics vs. Contemporary Amperex Technology | Dongnan Electronics vs. G bits Network Technology | Dongnan Electronics vs. BYD Co Ltd |
| Grandblue Environment vs. Jiangsu Yanghe Brewery | Grandblue Environment vs. JuneYao Dairy Co | Grandblue Environment vs. Zhengzhou Qianweiyangchu Food | Grandblue Environment vs. Great Sun Foods 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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