Correlation Between Dongfeng Automobile and SSAW Hotels
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By analyzing existing cross correlation between Dongfeng Automobile Co and SSAW Hotels Resorts, you can compare the effects of market volatilities on Dongfeng Automobile and SSAW Hotels 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 SSAW Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and SSAW Hotels.
Diversification Opportunities for Dongfeng Automobile and SSAW Hotels
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongfeng and SSAW is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and SSAW Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAW Hotels Resorts 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 SSAW Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAW Hotels Resorts has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and SSAW Hotels go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and SSAW Hotels
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 0.99 times more return on investment than SSAW Hotels. However, Dongfeng Automobile Co is 1.01 times less risky than SSAW Hotels. It trades about -0.06 of its potential returns per unit of risk. SSAW Hotels Resorts is currently generating about -0.11 per unit of risk. If you would invest 736.00 in Dongfeng Automobile Co on October 30, 2024 and sell it today you would lose (71.00) from holding Dongfeng Automobile Co or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. SSAW Hotels Resorts
Performance |
| Timeline |
| Dongfeng Automobile |
| SSAW Hotels Resorts |
Dongfeng Automobile and SSAW Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and SSAW Hotels
The main advantage of trading using opposite Dongfeng Automobile and SSAW Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, SSAW Hotels 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 SSAW Hotels will offset losses from the drop in SSAW Hotels' long position.| Dongfeng Automobile vs. Miracll Chemicals Co | Dongfeng Automobile vs. Aba Chemicals Corp | Dongfeng Automobile vs. Dr Peng Telecom | Dongfeng Automobile vs. Ziel Home Furnishing |
| SSAW Hotels vs. Wintao Communications Co | SSAW Hotels vs. Fiberhome Telecommunication Technologies | SSAW Hotels vs. Heren Health Co | SSAW Hotels vs. Youngy Health 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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