Correlation Between Dalian Thermal and China Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dalian Thermal Power and China Securities 800, you can compare the effects of market volatilities on Dalian Thermal and China Securities 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 Dalian Thermal with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and China Securities.
Diversification Opportunities for Dalian Thermal and China Securities
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dalian and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Dalian Thermal 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 Dalian Thermal Power are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Dalian Thermal i.e., Dalian Thermal and China Securities go up and down completely randomly.
Pair Corralation between Dalian Thermal and China Securities
Assuming the 90 days trading horizon Dalian Thermal Power is expected to generate 3.29 times more return on investment than China Securities. However, Dalian Thermal is 3.29 times more volatile than China Securities 800. It trades about 0.04 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.01 per unit of risk. If you would invest 506.00 in Dalian Thermal Power on August 24, 2024 and sell it today you would earn a total of 234.00 from holding Dalian Thermal Power or generate 46.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. China Securities 800
Performance |
| Timeline |
Dalian Thermal and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Dalian Thermal Power
Pair trading matchups for Dalian Thermal
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Dalian Thermal and China Securities
The main advantage of trading using opposite Dalian Thermal and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Dalian Thermal vs. Harbin Hatou Investment | Dalian Thermal vs. Tieling Newcity Investment | Dalian Thermal vs. Jiangsu Yueda Investment | Dalian Thermal vs. Metro Investment Development |
| China Securities vs. Zhejiang Yayi Metal | China Securities vs. Huatian Hotel Group | China Securities vs. Semiconductor Manufacturing Electronics | China Securities vs. Dalian Thermal Power |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |