Correlation Between Chinese Gamer and Dimerco Data
Can any of the company-specific risk be diversified away by investing in both Chinese Gamer and Dimerco Data at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chinese Gamer and Dimerco Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Gamer International and Dimerco Data System, you can compare the effects of market volatilities on Chinese Gamer and Dimerco Data 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 Chinese Gamer with a short position of Dimerco Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Gamer and Dimerco Data.
Diversification Opportunities for Chinese Gamer and Dimerco Data
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chinese and Dimerco is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Gamer International and Dimerco Data System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimerco Data System and Chinese Gamer 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 Chinese Gamer International are associated (or correlated) with Dimerco Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimerco Data System has no effect on the direction of Chinese Gamer i.e., Chinese Gamer and Dimerco Data go up and down completely randomly.
Pair Corralation between Chinese Gamer and Dimerco Data
Assuming the 90 days trading horizon Chinese Gamer is expected to generate 1.62 times less return on investment than Dimerco Data. But when comparing it to its historical volatility, Chinese Gamer International is 1.05 times less risky than Dimerco Data. It trades about 0.24 of its potential returns per unit of risk. Dimerco Data System is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 12,450 in Dimerco Data System on November 28, 2024 and sell it today you would earn a total of 850.00 from holding Dimerco Data System or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Gamer International vs. Dimerco Data System
Performance |
| Timeline |
| Chinese Gamer Intern |
| Dimerco Data System |
Chinese Gamer and Dimerco Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Gamer and Dimerco Data
The main advantage of trading using opposite Chinese Gamer and Dimerco Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Gamer position performs unexpectedly, Dimerco Data 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 Dimerco Data will offset losses from the drop in Dimerco Data's long position.| Chinese Gamer vs. Eagle Cold Storage | Chinese Gamer vs. Chernan Metal Industrial | Chinese Gamer vs. Cleanaway Co | Chinese Gamer vs. Emerging Display Technologies |
| Dimerco Data vs. Chernan Metal Industrial | Dimerco Data vs. China Metal Products | Dimerco Data vs. Great China Metal | Dimerco Data vs. Asia Metal Industries |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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