Correlation Between Dongfeng Automobile and Duzhe Publishing
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By analyzing existing cross correlation between Dongfeng Automobile Co and Duzhe Publishing Media, you can compare the effects of market volatilities on Dongfeng Automobile and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Duzhe Publishing.
Diversification Opportunities for Dongfeng Automobile and Duzhe Publishing
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Duzhe is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Duzhe Publishing
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to generate 0.94 times more return on investment than Duzhe Publishing. However, Dongfeng Automobile Co is 1.07 times less risky than Duzhe Publishing. It trades about 0.02 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.02 per unit of risk. If you would invest 601.00 in Dongfeng Automobile Co on November 5, 2024 and sell it today you would earn a total of 64.00 from holding Dongfeng Automobile Co or generate 10.65% 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. Duzhe Publishing Media
Performance |
| Timeline |
| Dongfeng Automobile |
| Duzhe Publishing Media |
Dongfeng Automobile and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Duzhe Publishing
The main advantage of trading using opposite Dongfeng Automobile and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing's long position.| Dongfeng Automobile vs. Xinhua Winshare Publishing | Dongfeng Automobile vs. Zhongrun Resources Investment | Dongfeng Automobile vs. Hunan Investment Group | Dongfeng Automobile vs. Zhejiang Publishing Media |
| Duzhe Publishing vs. Eastroc Beverage Group | Duzhe Publishing vs. Hangzhou Arcvideo Technology | Duzhe Publishing vs. Tongyu Communication | Duzhe Publishing vs. Hainan Airlines 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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