Correlation Between Dawning Information and Chengdu Xingrong
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By analyzing existing cross correlation between Dawning Information Industry and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Dawning Information and Chengdu Xingrong 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 Dawning Information with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Chengdu Xingrong.
Diversification Opportunities for Dawning Information and Chengdu Xingrong
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dawning and Chengdu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Dawning Information 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 Dawning Information Industry are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Dawning Information i.e., Dawning Information and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Dawning Information and Chengdu Xingrong
Assuming the 90 days trading horizon Dawning Information Industry is expected to under-perform the Chengdu Xingrong. In addition to that, Dawning Information is 2.78 times more volatile than Chengdu Xingrong Investment. It trades about -0.15 of its total potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.23 per unit of volatility. If you would invest 770.00 in Chengdu Xingrong Investment on September 12, 2024 and sell it today you would lose (57.00) from holding Chengdu Xingrong Investment or give up 7.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Dawning Information |
| Chengdu Xingrong Inv |
Dawning Information and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Chengdu Xingrong
The main advantage of trading using opposite Dawning Information and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Dawning Information vs. Gansu Jiu Steel | Dawning Information vs. Shandong Mining Machinery | Dawning Information vs. Aba Chemicals Corp | Dawning Information vs. BlueFocus Communication Group |
| Chengdu Xingrong vs. Sportsoul Co Ltd | Chengdu Xingrong vs. Guizhou BroadcastingTV Info | Chengdu Xingrong vs. Lander Sports Development | Chengdu Xingrong vs. Road Environment 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 CEOs Directory module to screen CEOs from public companies around the world.
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