Correlation Between Dongxing Sec and Long Yuan
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By analyzing existing cross correlation between Dongxing Sec Co and Long Yuan Construction, you can compare the effects of market volatilities on Dongxing Sec and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Long Yuan.
Diversification Opportunities for Dongxing Sec and Long Yuan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Long is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Long Yuan go up and down completely randomly.
Pair Corralation between Dongxing Sec and Long Yuan
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.77 times more return on investment than Long Yuan. However, Dongxing Sec Co is 1.3 times less risky than Long Yuan. It trades about 0.06 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.01 per unit of risk. If you would invest 766.00 in Dongxing Sec Co on September 12, 2024 and sell it today you would earn a total of 444.00 from holding Dongxing Sec Co or generate 57.96% 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. Long Yuan Construction
Performance |
| Timeline |
| Dongxing Sec |
| Long Yuan Construction |
Dongxing Sec and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Long Yuan
The main advantage of trading using opposite Dongxing Sec and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Dongxing Sec vs. Maccura Biotechnology Co | Dongxing Sec vs. Jiangsu GDK Biotechnology | Dongxing Sec vs. Fiberhome Telecommunication Technologies | Dongxing Sec vs. Ningbo MedicalSystem Biotechnology |
| Long Yuan vs. Saurer Intelligent Technology | Long Yuan vs. Tianshui Huatian Technology | Long Yuan vs. HUAQIN TECHNOLOGY LTD | Long Yuan vs. Northking Information 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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