Correlation Between Dongxing Sec and Heilongjiang Publishing
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By analyzing existing cross correlation between Dongxing Sec Co and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Dongxing Sec and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Heilongjiang Publishing.
Diversification Opportunities for Dongxing Sec and Heilongjiang Publishing
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongxing and Heilongjiang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Dongxing Sec and Heilongjiang Publishing
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.1 times more return on investment than Heilongjiang Publishing. However, Dongxing Sec is 1.1 times more volatile than Heilongjiang Publishing Media. It trades about -0.03 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.2 per unit of risk. If you would invest 1,121 in Dongxing Sec Co on October 24, 2024 and sell it today you would lose (30.00) from holding Dongxing Sec Co or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dongxing Sec Co vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Dongxing Sec |
| Heilongjiang Publishing |
Dongxing Sec and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Heilongjiang Publishing
The main advantage of trading using opposite Dongxing Sec and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Dongxing Sec vs. Zhuhai Comleader Information | Dongxing Sec vs. Jiangnan Mould Plastic | Dongxing Sec vs. Nanjing Canatal Data | Dongxing Sec vs. Konfoong Materials International |
| Heilongjiang Publishing vs. Digiwin Software Co | Heilongjiang Publishing vs. Changchun UP Optotech | Heilongjiang Publishing vs. Kailong High Technology | Heilongjiang Publishing vs. HUAQIN TECHNOLOGY LTD |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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