Correlation Between China Marine and Datang HuaYin
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By analyzing existing cross correlation between China Marine Information and Datang HuaYin Electric, you can compare the effects of market volatilities on China Marine and Datang HuaYin 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 China Marine with a short position of Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Marine and Datang HuaYin.
Diversification Opportunities for China Marine and Datang HuaYin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Datang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Marine Information and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric and China Marine 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 China Marine Information are associated (or correlated) with Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of China Marine i.e., China Marine and Datang HuaYin go up and down completely randomly.
Pair Corralation between China Marine and Datang HuaYin
Assuming the 90 days trading horizon China Marine Information is expected to under-perform the Datang HuaYin. In addition to that, China Marine is 1.36 times more volatile than Datang HuaYin Electric. It trades about -0.31 of its total potential returns per unit of risk. Datang HuaYin Electric is currently generating about -0.07 per unit of volatility. If you would invest 347.00 in Datang HuaYin Electric on August 28, 2024 and sell it today you would lose (12.00) from holding Datang HuaYin Electric or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Marine Information vs. Datang HuaYin Electric
Performance |
| Timeline |
| China Marine Information |
| Datang HuaYin Electric |
China Marine and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Marine and Datang HuaYin
The main advantage of trading using opposite China Marine and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Marine position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| China Marine vs. Cambricon Technologies Corp | China Marine vs. Loongson Technology Corp | China Marine vs. Chongqing Road Bridge | China Marine vs. Shenzhen Fortune Trend |
| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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