Correlation Between Dongfeng Automobile and Guangzhou Seagull
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Dongfeng Automobile and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Guangzhou Seagull.
Diversification Opportunities for Dongfeng Automobile and Guangzhou Seagull
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongfeng and Guangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Guangzhou Seagull
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 0.99 times more return on investment than Guangzhou Seagull. However, Dongfeng Automobile Co is 1.01 times less risky than Guangzhou Seagull. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.0 per unit of risk. If you would invest 625.00 in Dongfeng Automobile Co on September 2, 2024 and sell it today you would earn a total of 111.00 from holding Dongfeng Automobile Co or generate 17.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Dongfeng Automobile |
| Guangzhou Seagull Kitchen |
Dongfeng Automobile and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Guangzhou Seagull
The main advantage of trading using opposite Dongfeng Automobile and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Dongfeng Automobile vs. Biwin Storage Technology | Dongfeng Automobile vs. PetroChina Co Ltd | Dongfeng Automobile vs. Industrial and Commercial | Dongfeng Automobile vs. China Construction Bank |
| Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Agricultural Bank of | Guangzhou Seagull vs. China Mobile Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |