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
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and Dazhong is -0.23. 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 generate 1.1 times more return on investment than Dazhong Transportation. However, Chinese Universe is 1.1 times more volatile than Dazhong Transportation Group. It trades about 0.04 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.02 per unit of risk. If you would invest 905.00 in Chinese Universe Publishing on September 1, 2024 and sell it today you would earn a total of 355.00 from holding Chinese Universe Publishing or generate 39.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| 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. Peoples Insurance of | Chinese Universe vs. State Grid InformationCommunication | Chinese Universe vs. Allwin Telecommunication Co | Chinese Universe vs. Wuhan Yangtze Communication |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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