Correlation Between Weihai Honglin and Digiwin Software
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By analyzing existing cross correlation between Weihai Honglin Electronic and Digiwin Software Co, you can compare the effects of market volatilities on Weihai Honglin and Digiwin Software 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 Weihai Honglin with a short position of Digiwin Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Digiwin Software.
Diversification Opportunities for Weihai Honglin and Digiwin Software
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weihai and Digiwin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Digiwin Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digiwin Software and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Digiwin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digiwin Software has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Digiwin Software go up and down completely randomly.
Pair Corralation between Weihai Honglin and Digiwin Software
Assuming the 90 days trading horizon Weihai Honglin is expected to generate 4.73 times less return on investment than Digiwin Software. But when comparing it to its historical volatility, Weihai Honglin Electronic is 1.28 times less risky than Digiwin Software. It trades about 0.02 of its potential returns per unit of risk. Digiwin Software Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,160 in Digiwin Software Co on September 12, 2024 and sell it today you would earn a total of 978.00 from holding Digiwin Software Co or generate 45.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Digiwin Software Co
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Digiwin Software |
Weihai Honglin and Digiwin Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Digiwin Software
The main advantage of trading using opposite Weihai Honglin and Digiwin Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Digiwin Software 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 Digiwin Software will offset losses from the drop in Digiwin Software's long position.| Weihai Honglin vs. Agricultural Bank of | Weihai Honglin vs. Industrial and Commercial | Weihai Honglin vs. Bank of China | Weihai Honglin vs. PetroChina Co Ltd |
| Digiwin Software vs. Jiaozuo Wanfang Aluminum | Digiwin Software vs. ZYF Lopsking Aluminum | Digiwin Software vs. Harbin Air Conditioning | Digiwin Software vs. MayAir Technology 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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