Correlation Between Dongfeng Automobile and Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Industrial and Commercial, you can compare the effects of market volatilities on Dongfeng Automobile and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Industrial.
Diversification Opportunities for Dongfeng Automobile and Industrial
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongfeng and Industrial is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Industrial go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Industrial
Assuming the 90 days trading horizon Dongfeng Automobile is expected to generate 1.86 times less return on investment than Industrial. In addition to that, Dongfeng Automobile is 2.4 times more volatile than Industrial and Commercial. It trades about 0.02 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.1 per unit of volatility. If you would invest 402.00 in Industrial and Commercial on November 6, 2024 and sell it today you would earn a total of 280.00 from holding Industrial and Commercial or generate 69.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Industrial and Commercial
Performance |
| Timeline |
| Dongfeng Automobile |
| Industrial and Commercial |
Dongfeng Automobile and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Industrial
The main advantage of trading using opposite Dongfeng Automobile and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Dongfeng Automobile vs. Easyhome New Retail | Dongfeng Automobile vs. CICC Fund Management | Dongfeng Automobile vs. Sanbo Hospital Management | Dongfeng Automobile vs. Xiangyu Medical Co |
| Industrial vs. Qifeng New Material | Industrial vs. Hunan Investment Group | Industrial vs. Cultural Investment Holdings | Industrial vs. Zoje Resources Investment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |