Correlation Between Dongfeng Automobile and Jiangsu Yueda
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By analyzing existing cross correlation between Dongfeng Automobile Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Dongfeng Automobile and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Jiangsu Yueda.
Diversification Opportunities for Dongfeng Automobile and Jiangsu Yueda
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Jiangsu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Jiangsu Yueda
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 1.48 times more return on investment than Jiangsu Yueda. However, Dongfeng Automobile is 1.48 times more volatile than Jiangsu Yueda Investment. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.03 per unit of risk. If you would invest 645.00 in Dongfeng Automobile Co on October 14, 2024 and sell it today you would earn a total of 12.00 from holding Dongfeng Automobile Co or generate 1.86% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Dongfeng Automobile |
| Jiangsu Yueda Investment |
Dongfeng Automobile and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Jiangsu Yueda
The main advantage of trading using opposite Dongfeng Automobile and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Dongfeng Automobile vs. Jiangsu Yueda Investment | Dongfeng Automobile vs. Hunan Mendale Hometextile | Dongfeng Automobile vs. Zoy Home Furnishing | Dongfeng Automobile vs. Markor International Home |
| Jiangsu Yueda vs. Zhonghong Pulin Medical | Jiangsu Yueda vs. Medprin Regenerative Medical | Jiangsu Yueda vs. Quectel Wireless Solutions | Jiangsu Yueda vs. Hengkang Medical Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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