Correlation Between Dongnan Electronics and Fushun Special
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By analyzing existing cross correlation between Dongnan Electronics Co and Fushun Special Steel, you can compare the effects of market volatilities on Dongnan Electronics and Fushun Special 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 Fushun Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and Fushun Special.
Diversification Opportunities for Dongnan Electronics and Fushun Special
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongnan and Fushun is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics Co and Fushun Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fushun Special Steel 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 Fushun Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fushun Special Steel has no effect on the direction of Dongnan Electronics i.e., Dongnan Electronics and Fushun Special go up and down completely randomly.
Pair Corralation between Dongnan Electronics and Fushun Special
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to generate 1.29 times more return on investment than Fushun Special. However, Dongnan Electronics is 1.29 times more volatile than Fushun Special Steel. It trades about 0.02 of its potential returns per unit of risk. Fushun Special Steel is currently generating about -0.05 per unit of risk. If you would invest 2,434 in Dongnan Electronics Co on September 3, 2024 and sell it today you would earn a total of 36.00 from holding Dongnan Electronics Co or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. Fushun Special Steel
Performance |
| Timeline |
| Dongnan Electronics |
| Fushun Special Steel |
Dongnan Electronics and Fushun Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and Fushun Special
The main advantage of trading using opposite Dongnan Electronics and Fushun Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics position performs unexpectedly, Fushun Special 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 Fushun Special will offset losses from the drop in Fushun Special's long position.| Dongnan Electronics vs. Cultural Investment Holdings | Dongnan Electronics vs. Gome Telecom Equipment | Dongnan Electronics vs. Bus Online Co | Dongnan Electronics vs. Holitech Technology Co |
| Fushun Special vs. Zijin Mining Group | Fushun Special vs. Wanhua Chemical Group | Fushun Special vs. Baoshan Iron Steel | Fushun Special vs. Rongsheng Petrochemical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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