Correlation Between Dongfeng Automobile and Mango Excellent
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By analyzing existing cross correlation between Dongfeng Automobile Co and Mango Excellent Media, you can compare the effects of market volatilities on Dongfeng Automobile and Mango Excellent 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 Mango Excellent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Mango Excellent.
Diversification Opportunities for Dongfeng Automobile and Mango Excellent
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Mango is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Mango Excellent Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mango Excellent Media 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 Mango Excellent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mango Excellent Media has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Mango Excellent go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Mango Excellent
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.11 times more return on investment than Mango Excellent. However, Dongfeng Automobile is 1.11 times more volatile than Mango Excellent Media. It trades about 0.04 of its potential returns per unit of risk. Mango Excellent Media is currently generating about 0.04 per unit of risk. If you would invest 550.00 in Dongfeng Automobile Co on November 3, 2024 and sell it today you would earn a total of 115.00 from holding Dongfeng Automobile Co or generate 20.91% 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. Mango Excellent Media
Performance |
| Timeline |
| Dongfeng Automobile |
| Mango Excellent Media |
Dongfeng Automobile and Mango Excellent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Mango Excellent
The main advantage of trading using opposite Dongfeng Automobile and Mango Excellent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Mango Excellent 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 Mango Excellent will offset losses from the drop in Mango Excellent's long position.The idea behind Dongfeng Automobile Co and Mango Excellent Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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