Correlation Between Dongfeng Automobile and State Grid
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and State Grid InformationCommunication, you can compare the effects of market volatilities on Dongfeng Automobile and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and State Grid.
Diversification Opportunities for Dongfeng Automobile and State Grid
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongfeng and State is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and State Grid go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and State Grid
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.1 times more return on investment than State Grid. However, Dongfeng Automobile is 1.1 times more volatile than State Grid InformationCommunication. It trades about 0.02 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.02 per unit of risk. If you would invest 601.00 in Dongfeng Automobile Co on October 29, 2024 and sell it today you would earn a total of 87.00 from holding Dongfeng Automobile Co or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. State Grid InformationCommunic
Performance |
| Timeline |
| Dongfeng Automobile |
| State Grid Informati |
Dongfeng Automobile and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and State Grid
The main advantage of trading using opposite Dongfeng Automobile and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Dongfeng Automobile vs. Guangzhou Jinyi Media | Dongfeng Automobile vs. Xinxiang Chemical Fiber | Dongfeng Automobile vs. Omnijoi Media Corp | Dongfeng Automobile vs. Liaoning Dingjide Petrochemical |
| State Grid vs. Industrial and Commercial | State Grid vs. Kweichow Moutai Co | State Grid vs. Agricultural Bank of | State Grid vs. China Mobile Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |