Correlation Between Dongfeng Automobile and Shanghai AtHub
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By analyzing existing cross correlation between Dongfeng Automobile Co and Shanghai AtHub Co, you can compare the effects of market volatilities on Dongfeng Automobile and Shanghai AtHub 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 Shanghai AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Shanghai AtHub.
Diversification Opportunities for Dongfeng Automobile and Shanghai AtHub
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Shanghai AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub 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 Shanghai AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Shanghai AtHub go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Shanghai AtHub
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 0.98 times more return on investment than Shanghai AtHub. However, Dongfeng Automobile Co is 1.02 times less risky than Shanghai AtHub. It trades about 0.04 of its potential returns per unit of risk. Shanghai AtHub Co is currently generating about 0.02 per unit of risk. If you would invest 568.00 in Dongfeng Automobile Co on September 28, 2024 and sell it today you would earn a total of 205.00 from holding Dongfeng Automobile Co or generate 36.09% 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. Shanghai AtHub Co
Performance |
| Timeline |
| Dongfeng Automobile |
| Shanghai AtHub |
Dongfeng Automobile and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Shanghai AtHub
The main advantage of trading using opposite Dongfeng Automobile and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Shanghai AtHub 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 Shanghai AtHub will offset losses from the drop in Shanghai AtHub's long position.| Dongfeng Automobile vs. New China Life | Dongfeng Automobile vs. Ming Yang Smart | Dongfeng Automobile vs. 159681 | Dongfeng Automobile vs. 159005 |
| Shanghai AtHub vs. Industrial and Commercial | Shanghai AtHub vs. Agricultural Bank of | Shanghai AtHub vs. China Construction Bank | Shanghai AtHub vs. Bank of China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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