Correlation Between Dawning Information and AVCON Information
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By analyzing existing cross correlation between Dawning Information Industry and AVCON Information Tech, you can compare the effects of market volatilities on Dawning Information and AVCON 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 Dawning Information with a short position of AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and AVCON Information.
Diversification Opportunities for Dawning Information and AVCON Information
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and AVCON is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Dawning Information i.e., Dawning Information and AVCON Information go up and down completely randomly.
Pair Corralation between Dawning Information and AVCON Information
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.02 times more return on investment than AVCON Information. However, Dawning Information is 1.02 times more volatile than AVCON Information Tech. It trades about 0.09 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.04 per unit of risk. If you would invest 2,183 in Dawning Information Industry on September 12, 2024 and sell it today you would earn a total of 5,311 from holding Dawning Information Industry or generate 243.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. AVCON Information Tech
Performance |
| Timeline |
| Dawning Information |
| AVCON Information Tech |
Dawning Information and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and AVCON Information
The main advantage of trading using opposite Dawning Information and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, AVCON 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Gansu Jiu Steel | AVCON Information vs. Shandong Mining Machinery | AVCON Information vs. Aba Chemicals Corp | AVCON Information vs. BlueFocus Communication Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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