Correlation Between Dongfeng Automobile and By Health
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By analyzing existing cross correlation between Dongfeng Automobile Co and By health, you can compare the effects of market volatilities on Dongfeng Automobile and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and By Health.
Diversification Opportunities for Dongfeng Automobile and By Health
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and 300146 is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and By Health go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and By Health
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.5 times more return on investment than By Health. However, Dongfeng Automobile is 1.5 times more volatile than By health. It trades about 0.03 of its potential returns per unit of risk. By health is currently generating about -0.06 per unit of risk. If you would invest 636.00 in Dongfeng Automobile Co on August 26, 2024 and sell it today you would earn a total of 64.00 from holding Dongfeng Automobile Co or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. By health
Performance |
| Timeline |
| Dongfeng Automobile |
| By health |
Dongfeng Automobile and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and By Health
The main advantage of trading using opposite Dongfeng Automobile and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| Dongfeng Automobile vs. Lutian Machinery Co | Dongfeng Automobile vs. China Longyuan Power | Dongfeng Automobile vs. Changshu Tongrun Auto | Dongfeng Automobile vs. PetroChina Co Ltd |
| By Health vs. Industrial and Commercial | By Health vs. China Construction Bank | By Health vs. Bank of China | By Health vs. Agricultural Bank of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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