Correlation Between Changjiang Jinggong and Dawning Information
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Dawning Information Industry, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Dawning Information.
Diversification Opportunities for Changjiang Jinggong and Dawning Information
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changjiang and Dawning is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Dawning Information go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Dawning Information
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 0.36 times more return on investment than Dawning Information. However, Changjiang Jinggong Steel is 2.79 times less risky than Dawning Information. It trades about 0.26 of its potential returns per unit of risk. Dawning Information Industry is currently generating about -0.09 per unit of risk. If you would invest 312.00 in Changjiang Jinggong Steel on September 14, 2024 and sell it today you would earn a total of 26.00 from holding Changjiang Jinggong Steel or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Dawning Information Industry
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Dawning Information |
Changjiang Jinggong and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Dawning Information
The main advantage of trading using opposite Changjiang Jinggong and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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