Correlation Between Dawning Information and Shenzhen Hifuture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dawning Information Industry and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Dawning Information and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Shenzhen Hifuture.
Diversification Opportunities for Dawning Information and Shenzhen Hifuture
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dawning and Shenzhen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Dawning Information i.e., Dawning Information and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Dawning Information and Shenzhen Hifuture
Assuming the 90 days trading horizon Dawning Information is expected to generate 1.12 times less return on investment than Shenzhen Hifuture. In addition to that, Dawning Information is 1.81 times more volatile than Shenzhen Hifuture Electric. It trades about 0.16 of its total potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.33 per unit of volatility. If you would invest 234.00 in Shenzhen Hifuture Electric on September 5, 2024 and sell it today you would earn a total of 51.00 from holding Shenzhen Hifuture Electric or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Dawning Information |
| Shenzhen Hifuture |
Dawning Information and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Shenzhen Hifuture
The main advantage of trading using opposite Dawning Information and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Dawning Information vs. Beijing Bashi Media | Dawning Information vs. Dalian Zeus Entertainment | Dawning Information vs. Shuhua Sports Co | Dawning Information vs. Shandong Homey Aquatic |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |