Correlation Between Dongxing Sec and Industrial
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By analyzing existing cross correlation between Dongxing Sec Co and Industrial and Commercial, you can compare the effects of market volatilities on Dongxing Sec and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Industrial.
Diversification Opportunities for Dongxing Sec and Industrial
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongxing and Industrial is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Industrial go up and down completely randomly.
Pair Corralation between Dongxing Sec and Industrial
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 4.64 times more return on investment than Industrial. However, Dongxing Sec is 4.64 times more volatile than Industrial and Commercial. It trades about 0.09 of its potential returns per unit of risk. Industrial and Commercial is currently generating about -0.05 per unit of risk. If you would invest 1,035 in Dongxing Sec Co on August 26, 2024 and sell it today you would earn a total of 73.00 from holding Dongxing Sec Co or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Industrial and Commercial
Performance |
| Timeline |
| Dongxing Sec |
| Industrial and Commercial |
Dongxing Sec and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Industrial
The main advantage of trading using opposite Dongxing Sec and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Dongxing Sec vs. Jonjee Hi tech Industrial | Dongxing Sec vs. Northking Information Technology | Dongxing Sec vs. CITIC Guoan Information | Dongxing Sec vs. Sunwave Communications Co |
| Industrial vs. Zhuhai Comleader Information | Industrial vs. Hygon Information Technology | Industrial vs. GigaDevice SemiconductorBeiji | Industrial vs. ZJBC 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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