Correlation Between Dongxing Sec and PharmaResources
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By analyzing existing cross correlation between Dongxing Sec Co and PharmaResources Co Ltd, you can compare the effects of market volatilities on Dongxing Sec and PharmaResources 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 PharmaResources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and PharmaResources.
Diversification Opportunities for Dongxing Sec and PharmaResources
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and PharmaResources is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and PharmaResources Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PharmaResources 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 PharmaResources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PharmaResources has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and PharmaResources go up and down completely randomly.
Pair Corralation between Dongxing Sec and PharmaResources
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.51 times more return on investment than PharmaResources. However, Dongxing Sec Co is 1.97 times less risky than PharmaResources. It trades about 0.05 of its potential returns per unit of risk. PharmaResources Co Ltd is currently generating about 0.02 per unit of risk. If you would invest 810.00 in Dongxing Sec Co on September 19, 2024 and sell it today you would earn a total of 324.00 from holding Dongxing Sec Co or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. PharmaResources Co Ltd
Performance |
| Timeline |
| Dongxing Sec |
| PharmaResources |
Dongxing Sec and PharmaResources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and PharmaResources
The main advantage of trading using opposite Dongxing Sec and PharmaResources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, PharmaResources 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 PharmaResources will offset losses from the drop in PharmaResources' long position.| Dongxing Sec vs. Shantou Wanshun Package | Dongxing Sec vs. Jiahe Foods Industry | Dongxing Sec vs. Shenyang Huitian Thermal | Dongxing Sec vs. Hefei Metalforming Mach |
| PharmaResources vs. Industrial and Commercial | PharmaResources vs. China Construction Bank | PharmaResources vs. Bank of China | PharmaResources vs. Agricultural Bank of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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