Correlation Between Dongfeng Automobile and INKON Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and INKON Life Technology, you can compare the effects of market volatilities on Dongfeng Automobile and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and INKON Life.
Diversification Opportunities for Dongfeng Automobile and INKON Life
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongfeng and INKON is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and INKON Life go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and INKON Life
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.88 times more return on investment than INKON Life. However, Dongfeng Automobile is 1.88 times more volatile than INKON Life Technology. It trades about 0.05 of its potential returns per unit of risk. INKON Life Technology is currently generating about -0.13 per unit of risk. If you would invest 758.00 in Dongfeng Automobile Co on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Dongfeng Automobile Co or generate 2.77% 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. INKON Life Technology
Performance |
| Timeline |
| Dongfeng Automobile |
| INKON Life Technology |
Dongfeng Automobile and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and INKON Life
The main advantage of trading using opposite Dongfeng Automobile and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Dongfeng Automobile vs. Lutian Machinery Co | Dongfeng Automobile vs. PetroChina Co Ltd | Dongfeng Automobile vs. Bank of China | Dongfeng Automobile vs. Gansu Jiu Steel |
| INKON Life vs. Pengxin International Mining | INKON Life vs. Dongfeng Automobile Co | INKON Life vs. Wuhan Yangtze Communication | INKON Life vs. Guangzhou Dongfang Hotel |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |