Correlation Between Poly Real and Dongguan Tarry
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By analyzing existing cross correlation between Poly Real Estate and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Poly Real and Dongguan Tarry 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 Poly Real with a short position of Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Dongguan Tarry.
Diversification Opportunities for Poly Real and Dongguan Tarry
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Poly and Dongguan is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect and Poly Real 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 Poly Real Estate are associated (or correlated) with Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Poly Real i.e., Poly Real and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Poly Real and Dongguan Tarry
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Dongguan Tarry. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.43 times less risky than Dongguan Tarry. The stock trades about -0.04 of its potential returns per unit of risk. The Dongguan Tarry Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,230 in Dongguan Tarry Electronics on October 19, 2024 and sell it today you would earn a total of 1,460 from holding Dongguan Tarry Electronics or generate 27.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Poly Real Estate |
| Dongguan Tarry Elect |
Poly Real and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Dongguan Tarry
The main advantage of trading using opposite Poly Real and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Poly Real vs. Smartgiant Technology Co | Poly Real vs. Shuhua Sports Co | Poly Real vs. Holitech Technology Co | Poly Real vs. Tianjin Ruixin Technology |
| Dongguan Tarry vs. Healthcare Co | Dongguan Tarry vs. Meinian Onehealth Healthcare | Dongguan Tarry vs. Heren Health Co | Dongguan Tarry vs. Anhui Huaren Health |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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