Correlation Between Chinese Universe and Dazhong Transportation
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By analyzing existing cross correlation between Chinese Universe Publishing and Dazhong Transportation Group, you can compare the effects of market volatilities on Chinese Universe and Dazhong Transportation 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 Chinese Universe with a short position of Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Dazhong Transportation.
Diversification Opportunities for Chinese Universe and Dazhong Transportation
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chinese and Dazhong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Chinese Universe i.e., Chinese Universe and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Chinese Universe and Dazhong Transportation
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Dazhong Transportation. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.24 times less risky than Dazhong Transportation. The stock trades about -0.25 of its potential returns per unit of risk. The Dazhong Transportation Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Dazhong Transportation Group on October 29, 2024 and sell it today you would earn a total of 0.00 from holding Dazhong Transportation Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Dazhong Transportation Group
Performance |
| Timeline |
| Chinese Universe Pub |
| Dazhong Transportation |
Chinese Universe and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Dazhong Transportation
The main advantage of trading using opposite Chinese Universe and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Chinese Universe vs. Xinjiang Communications Construction | Chinese Universe vs. Allwin Telecommunication Co | Chinese Universe vs. Tongyu Communication | Chinese Universe vs. Wintao Communications Co |
| Dazhong Transportation vs. Nuode Investment Co | Dazhong Transportation vs. Shanghai Yaoji Playing | Dazhong Transportation vs. Gansu Huangtai Wine marketing | Dazhong Transportation vs. Xiandai Investment 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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