Correlation Between Dongxing Sec and Qingdao Choho
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By analyzing existing cross correlation between Dongxing Sec Co and Qingdao Choho Industrial, you can compare the effects of market volatilities on Dongxing Sec and Qingdao Choho 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 Dongxing Sec with a short position of Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Qingdao Choho.
Diversification Opportunities for Dongxing Sec and Qingdao Choho
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Qingdao is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Qingdao Choho go up and down completely randomly.
Pair Corralation between Dongxing Sec and Qingdao Choho
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.51 times more return on investment than Qingdao Choho. However, Dongxing Sec Co is 1.96 times less risky than Qingdao Choho. It trades about 0.12 of its potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.04 per unit of risk. If you would invest 1,124 in Dongxing Sec Co on September 28, 2024 and sell it today you would earn a total of 50.00 from holding Dongxing Sec Co or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dongxing Sec Co vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Dongxing Sec |
| Qingdao Choho Industrial |
Dongxing Sec and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Qingdao Choho
The main advantage of trading using opposite Dongxing Sec and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Dongxing Sec vs. Runjian Communication Co | Dongxing Sec vs. Fiberhome Telecommunication Technologies | Dongxing Sec vs. Nanjing Putian Telecommunications | Dongxing Sec vs. Penyao Environmental Protection |
| Qingdao Choho vs. China Life Insurance | Qingdao Choho vs. Cinda Securities Co | Qingdao Choho vs. Piotech Inc A | Qingdao Choho vs. Dongxing Sec 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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