Correlation Between China Fortune and Dawning Information
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By analyzing existing cross correlation between China Fortune Land and Dawning Information Industry, you can compare the effects of market volatilities on China Fortune and Dawning Information 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 China Fortune with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fortune and Dawning Information.
Diversification Opportunities for China Fortune and Dawning Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Dawning is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Fortune Land and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and China Fortune 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 China Fortune Land are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of China Fortune i.e., China Fortune and Dawning Information go up and down completely randomly.
Pair Corralation between China Fortune and Dawning Information
Assuming the 90 days trading horizon China Fortune Land is expected to generate 1.68 times more return on investment than Dawning Information. However, China Fortune is 1.68 times more volatile than Dawning Information Industry. It trades about 0.12 of its potential returns per unit of risk. Dawning Information Industry is currently generating about -0.13 per unit of risk. If you would invest 326.00 in China Fortune Land on September 13, 2024 and sell it today you would earn a total of 44.00 from holding China Fortune Land or generate 13.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fortune Land vs. Dawning Information Industry
Performance |
| Timeline |
| China Fortune Land |
| Dawning Information |
China Fortune and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fortune and Dawning Information
The main advantage of trading using opposite China Fortune and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fortune position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| China Fortune vs. China Life Insurance | China Fortune vs. Cinda Securities Co | China Fortune vs. Piotech Inc A | China Fortune vs. Dongxing Sec Co |
| Dawning Information vs. Dhc Software Co | Dawning Information vs. ChengDu Hi Tech Development | Dawning Information vs. Sinofibers Technology Co | Dawning Information vs. Qingdao Hi Tech Moulds |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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