Correlation Between Dongxing Sec and Chongqing Sulian
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By analyzing existing cross correlation between Dongxing Sec Co and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Dongxing Sec and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Chongqing Sulian.
Diversification Opportunities for Dongxing Sec and Chongqing Sulian
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and Chongqing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Dongxing Sec and Chongqing Sulian
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.65 times more return on investment than Chongqing Sulian. However, Dongxing Sec Co is 1.53 times less risky than Chongqing Sulian. It trades about 0.15 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about -0.04 per unit of risk. If you would invest 1,103 in Dongxing Sec Co on September 27, 2024 and sell it today you would earn a total of 59.00 from holding Dongxing Sec Co or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Dongxing Sec |
| Chongqing Sulian Plastic |
Dongxing Sec and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Chongqing Sulian
The main advantage of trading using opposite Dongxing Sec and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec vs. BYD Co Ltd |
| Chongqing Sulian vs. China Life Insurance | Chongqing Sulian vs. Cinda Securities Co | Chongqing Sulian vs. Piotech Inc A | Chongqing Sulian 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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