Correlation Between Caihong Display and Dhc Software
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By analyzing existing cross correlation between Caihong Display Devices and Dhc Software Co, you can compare the effects of market volatilities on Caihong Display and Dhc Software 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 Caihong Display with a short position of Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Dhc Software.
Diversification Opportunities for Caihong Display and Dhc Software
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caihong and Dhc is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software and Caihong Display 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 Caihong Display Devices are associated (or correlated) with Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of Caihong Display i.e., Caihong Display and Dhc Software go up and down completely randomly.
Pair Corralation between Caihong Display and Dhc Software
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 1.67 times more return on investment than Dhc Software. However, Caihong Display is 1.67 times more volatile than Dhc Software Co. It trades about 0.1 of its potential returns per unit of risk. Dhc Software Co is currently generating about 0.09 per unit of risk. If you would invest 806.00 in Caihong Display Devices on November 3, 2024 and sell it today you would earn a total of 42.00 from holding Caihong Display Devices or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Dhc Software Co
Performance |
| Timeline |
| Caihong Display Devices |
| Dhc Software |
Caihong Display and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Dhc Software
The main advantage of trading using opposite Caihong Display and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, Dhc Software 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| Caihong Display vs. Industrial and Commercial | Caihong Display vs. Kweichow Moutai Co | Caihong Display vs. Agricultural Bank of | Caihong Display vs. China Mobile Limited |
| Dhc Software vs. Jiangsu GDK Biotechnology | Dhc Software vs. Sichuan Hebang Biotechnology | Dhc Software vs. Maccura Biotechnology Co | Dhc Software vs. Jinhe Biotechnology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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