Correlation Between Dongfeng Automobile and Gansu Huangtai
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By analyzing existing cross correlation between Dongfeng Automobile Co and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Dongfeng Automobile and Gansu Huangtai 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 Dongfeng Automobile with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Gansu Huangtai.
Diversification Opportunities for Dongfeng Automobile and Gansu Huangtai
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongfeng and Gansu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Dongfeng Automobile 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 Dongfeng Automobile Co are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Gansu Huangtai
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Dongfeng Automobile Co is 1.48 times less risky than Gansu Huangtai. The stock trades about -0.18 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,739 in Gansu Huangtai Wine marketing on October 18, 2024 and sell it today you would lose (68.00) from holding Gansu Huangtai Wine marketing or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Dongfeng Automobile |
| Gansu Huangtai Wine |
Dongfeng Automobile and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Gansu Huangtai
The main advantage of trading using opposite Dongfeng Automobile and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Dongfeng Automobile vs. Beijing Mainstreets Investment | Dongfeng Automobile vs. ButOne Information Corp | Dongfeng Automobile vs. Sublime China Information | Dongfeng Automobile vs. Shenzhen SDG Information |
| Gansu Huangtai vs. Runjian Communication Co | Gansu Huangtai vs. Dongfeng Automobile Co | Gansu Huangtai vs. Suzhou Mingzhi Technology | Gansu Huangtai vs. Songz Automobile Air |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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