Correlation Between China Asset and Dalian Thermal
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By analyzing existing cross correlation between China Asset Management and Dalian Thermal Power, you can compare the effects of market volatilities on China Asset and Dalian Thermal 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 China Asset with a short position of Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Dalian Thermal.
Diversification Opportunities for China Asset and Dalian Thermal
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Dalian is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power and China Asset 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 China Asset Management are associated (or correlated) with Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of China Asset i.e., China Asset and Dalian Thermal go up and down completely randomly.
Pair Corralation between China Asset and Dalian Thermal
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.31 times more return on investment than Dalian Thermal. However, China Asset Management is 3.21 times less risky than Dalian Thermal. It trades about 0.33 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.1 per unit of risk. If you would invest 313.00 in China Asset Management on October 29, 2024 and sell it today you would earn a total of 78.00 from holding China Asset Management or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Dalian Thermal Power
Performance |
| Timeline |
| China Asset Management |
| Dalian Thermal Power |
China Asset and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Dalian Thermal
The main advantage of trading using opposite China Asset and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| China Asset vs. Dhc Software Co | China Asset vs. Chongqing Changan Automobile | China Asset vs. Linewell Software Co | China Asset vs. Shenzhen Topway Video |
| Dalian Thermal vs. Xiamen Jihong Package | Dalian Thermal vs. Tederic Machinery Co | Dalian Thermal vs. Xiwang Foodstuffs Co | Dalian Thermal vs. Youyou 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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