Correlation Between Dongxing Sec and China Fortune
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongxing Sec Co and China Fortune Land, you can compare the effects of market volatilities on Dongxing Sec and China Fortune 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 China Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and China Fortune.
Diversification Opportunities for Dongxing Sec and China Fortune
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and China Fortune Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fortune Land 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 China Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fortune Land has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and China Fortune go up and down completely randomly.
Pair Corralation between Dongxing Sec and China Fortune
Assuming the 90 days trading horizon Dongxing Sec Co is expected to under-perform the China Fortune. But the stock apears to be less risky and, when comparing its historical volatility, Dongxing Sec Co is 3.01 times less risky than China Fortune. The stock trades about -0.11 of its potential returns per unit of risk. The China Fortune Land is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 326.00 in China Fortune Land on September 13, 2024 and sell it today you would earn a total of 44.00 from holding China Fortune Land or generate 13.5% 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. China Fortune Land
Performance |
| Timeline |
| Dongxing Sec |
| China Fortune Land |
Dongxing Sec and China Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and China Fortune
The main advantage of trading using opposite Dongxing Sec and China Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, China Fortune 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 China Fortune will offset losses from the drop in China Fortune's long position.| Dongxing Sec vs. Zhongtong Guomai Communication | Dongxing Sec vs. Harbin Air Conditioning | Dongxing Sec vs. Sunwave Communications Co | Dongxing Sec vs. Fiberhome Telecommunication Technologies |
| China Fortune vs. China Life Insurance | China Fortune vs. Cinda Securities Co | China Fortune vs. Piotech Inc A | China Fortune 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |