Correlation Between Gemdale Corp and Dongxing Sec
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By analyzing existing cross correlation between Gemdale Corp and Dongxing Sec Co, you can compare the effects of market volatilities on Gemdale Corp and Dongxing Sec 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 Gemdale Corp with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemdale Corp and Dongxing Sec.
Diversification Opportunities for Gemdale Corp and Dongxing Sec
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gemdale and Dongxing is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gemdale Corp and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Gemdale Corp 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 Gemdale Corp are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Gemdale Corp i.e., Gemdale Corp and Dongxing Sec go up and down completely randomly.
Pair Corralation between Gemdale Corp and Dongxing Sec
Assuming the 90 days trading horizon Gemdale Corp is expected to under-perform the Dongxing Sec. But the stock apears to be less risky and, when comparing its historical volatility, Gemdale Corp is 1.52 times less risky than Dongxing Sec. The stock trades about -0.21 of its potential returns per unit of risk. The Dongxing Sec Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,147 in Dongxing Sec Co on October 17, 2024 and sell it today you would lose (64.00) from holding Dongxing Sec Co or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemdale Corp vs. Dongxing Sec Co
Performance |
| Timeline |
| Gemdale Corp |
| Dongxing Sec |
Gemdale Corp and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemdale Corp and Dongxing Sec
The main advantage of trading using opposite Gemdale Corp and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemdale Corp position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Gemdale Corp vs. HaiXin Foods Co | Gemdale Corp vs. Beijing Sanyuan Foods | Gemdale Corp vs. Hainan Haiqi Transportation | Gemdale Corp vs. Qingdao Foods Co |
| Dongxing Sec vs. HeNan Splendor Science | Dongxing Sec vs. Xiamen Goldenhome Co | Dongxing Sec vs. Nanxing Furniture Machinery | Dongxing Sec vs. Easyhome New Retail |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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