Correlation Between Dongxing Sec and Autek China
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By analyzing existing cross correlation between Dongxing Sec Co and Autek China, you can compare the effects of market volatilities on Dongxing Sec and Autek China 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 Autek China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Autek China.
Diversification Opportunities for Dongxing Sec and Autek China
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Autek is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Autek China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autek China 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 Autek China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autek China has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Autek China go up and down completely randomly.
Pair Corralation between Dongxing Sec and Autek China
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.74 times more return on investment than Autek China. However, Dongxing Sec Co is 1.35 times less risky than Autek China. It trades about 0.05 of its potential returns per unit of risk. Autek China is currently generating about -0.02 per unit of risk. If you would invest 800.00 in Dongxing Sec Co on September 4, 2024 and sell it today you would earn a total of 357.00 from holding Dongxing Sec Co or generate 44.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Autek China
Performance |
| Timeline |
| Dongxing Sec |
| Autek China |
Dongxing Sec and Autek China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Autek China
The main advantage of trading using opposite Dongxing Sec and Autek China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Autek China 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 Autek China will offset losses from the drop in Autek China's long position.| Dongxing Sec vs. Rising Nonferrous Metals | Dongxing Sec vs. Ye Chiu Metal | Dongxing Sec vs. Guangdong Jingyi Metal | Dongxing Sec vs. GRINM Semiconductor Materials |
| Autek China vs. Dalian Zeus Entertainment | Autek China vs. Beijing Bashi Media | Autek China vs. Dazhong Transportation Group | Autek China vs. Shanghai Broadband Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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