Correlation Between Dongfeng Automobile and Huasi Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Huasi Agricultural Development, you can compare the effects of market volatilities on Dongfeng Automobile and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Huasi Agricultural.
Diversification Opportunities for Dongfeng Automobile and Huasi Agricultural
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Huasi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Huasi Agricultural
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to under-perform the Huasi Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Dongfeng Automobile Co is 1.19 times less risky than Huasi Agricultural. The stock trades about -0.28 of its potential returns per unit of risk. The Huasi Agricultural Development is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 483.00 in Huasi Agricultural Development on October 14, 2024 and sell it today you would lose (84.00) from holding Huasi Agricultural Development or give up 17.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Huasi Agricultural Development
Performance |
| Timeline |
| Dongfeng Automobile |
| Huasi Agricultural |
Dongfeng Automobile and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Huasi Agricultural
The main advantage of trading using opposite Dongfeng Automobile and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Dongfeng Automobile vs. Zhongzhu Medical Holdings | Dongfeng Automobile vs. Huizhou Speed Wireless | Dongfeng Automobile vs. Tinavi Medical Technologies | Dongfeng Automobile vs. Xiangyu Medical Co |
| Huasi Agricultural vs. Iat Automobile Technology | Huasi Agricultural vs. Haima Automobile Group | Huasi Agricultural vs. Beijing Yanjing Brewery | Huasi Agricultural vs. Dongfeng Automobile 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |