Correlation Between Dawning Information and Zoje Resources
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By analyzing existing cross correlation between Dawning Information Industry and Zoje Resources Investment, you can compare the effects of market volatilities on Dawning Information and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Zoje Resources.
Diversification Opportunities for Dawning Information and Zoje Resources
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dawning and Zoje is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Dawning Information i.e., Dawning Information and Zoje Resources go up and down completely randomly.
Pair Corralation between Dawning Information and Zoje Resources
Assuming the 90 days trading horizon Dawning Information Industry is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Dawning Information Industry is 1.07 times less risky than Zoje Resources. The stock trades about -0.23 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Zoje Resources Investment on October 25, 2024 and sell it today you would lose (24.00) from holding Zoje Resources Investment or give up 8.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Zoje Resources Investment
Performance |
| Timeline |
| Dawning Information |
| Zoje Resources Investment |
Dawning Information and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Zoje Resources
The main advantage of trading using opposite Dawning Information and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Dawning Information vs. Kweichow Moutai Co | Dawning Information vs. NAURA Technology Group | Dawning Information vs. APT Medical | Dawning Information vs. BYD Co Ltd |
| Zoje Resources vs. Guangzhou Restaurants Group | Zoje Resources vs. Wuhan Hvsen Biotechnology | Zoje Resources vs. Dawning Information Industry | Zoje Resources vs. Liaoning Chengda Biotechnology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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