Correlation Between Southern PublishingMedia and Dawning Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Southern PublishingMedia Co and Dawning Information Industry, you can compare the effects of market volatilities on Southern PublishingMedia and Dawning Information 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 Southern PublishingMedia with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Dawning Information.
Diversification Opportunities for Southern PublishingMedia and Dawning Information
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Southern and Dawning is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Southern PublishingMedia 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 Southern PublishingMedia Co are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Dawning Information go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Dawning Information
Assuming the 90 days trading horizon Southern PublishingMedia is expected to generate 1.35 times less return on investment than Dawning Information. In addition to that, Southern PublishingMedia is 1.06 times more volatile than Dawning Information Industry. It trades about 0.05 of its total potential returns per unit of risk. Dawning Information Industry is currently generating about 0.07 per unit of volatility. If you would invest 2,422 in Dawning Information Industry on October 16, 2024 and sell it today you would earn a total of 3,667 from holding Dawning Information Industry or generate 151.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Dawning Information Industry
Performance |
| Timeline |
| Southern PublishingMedia |
| Dawning Information |
Southern PublishingMedia and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Dawning Information
The main advantage of trading using opposite Southern PublishingMedia and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.The idea behind Southern PublishingMedia Co and Dawning Information Industry pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Dawning Information vs. Everdisplay Optronics Shanghai | Dawning Information vs. XiaMen HongXin Electron tech | Dawning Information vs. Sportsoul Co Ltd | Dawning Information vs. Caihong Display Devices |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets |