Correlation Between Jiangsu Yueda and Dawning Information
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Dawning Information Industry, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Dawning Information.
Diversification Opportunities for Jiangsu Yueda and Dawning Information
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Dawning is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Dawning Information go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Dawning Information
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 1.63 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 2.34 times less risky than Dawning Information. It trades about 0.23 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,650 in Dawning Information Industry on September 5, 2024 and sell it today you would earn a total of 1,135 from holding Dawning Information Industry or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Dawning Information Industry
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Dawning Information |
Jiangsu Yueda and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Dawning Information
The main advantage of trading using opposite Jiangsu Yueda and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Rising Nonferrous Metals | Jiangsu Yueda vs. Shaanxi Meineng Clean | Jiangsu Yueda vs. Lonkey Industrial Co | Jiangsu Yueda vs. Ningbo Ligong Online |
| Dawning Information vs. Beijing Bashi Media | Dawning Information vs. Dalian Zeus Entertainment | Dawning Information vs. Shuhua Sports Co | Dawning Information vs. Shandong Homey Aquatic |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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