Correlation Between Dawning Information and Shenzhen New
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By analyzing existing cross correlation between Dawning Information Industry and Shenzhen New Nanshan, you can compare the effects of market volatilities on Dawning Information and Shenzhen New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Shenzhen New.
Diversification Opportunities for Dawning Information and Shenzhen New
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dawning and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Dawning Information i.e., Dawning Information and Shenzhen New go up and down completely randomly.
Pair Corralation between Dawning Information and Shenzhen New
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.53 times more return on investment than Shenzhen New. However, Dawning Information is 1.53 times more volatile than Shenzhen New Nanshan. It trades about 0.09 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.04 per unit of risk. If you would invest 2,299 in Dawning Information Industry on September 3, 2024 and sell it today you would earn a total of 6,181 from holding Dawning Information Industry or generate 268.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Shenzhen New Nanshan
Performance |
| Timeline |
| Dawning Information |
| Shenzhen New Nanshan |
Dawning Information and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Shenzhen New
The main advantage of trading using opposite Dawning Information and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New's long position.| Dawning Information vs. Shanghai Xinhua Media | Dawning Information vs. Shanghai Metersbonwe FashionAccessories | Dawning Information vs. Guangdong Jingyi Metal | Dawning Information vs. Chengtun Mining Group |
| Shenzhen New vs. Chengdu B ray Media | Shenzhen New vs. Lonkey Industrial Co | Shenzhen New vs. Yoantion Industrial IncLtd | Shenzhen New vs. Dalian Zeus Entertainment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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