Correlation Between Dawning Information and Sungrow Power
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By analyzing existing cross correlation between Dawning Information Industry and Sungrow Power Supply, you can compare the effects of market volatilities on Dawning Information and Sungrow Power 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 Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Sungrow Power.
Diversification Opportunities for Dawning Information and Sungrow Power
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dawning and Sungrow is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply 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 Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Dawning Information i.e., Dawning Information and Sungrow Power go up and down completely randomly.
Pair Corralation between Dawning Information and Sungrow Power
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.15 times more return on investment than Sungrow Power. However, Dawning Information is 1.15 times more volatile than Sungrow Power Supply. It trades about 0.09 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about 0.02 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Sungrow Power Supply
Performance |
| Timeline |
| Dawning Information |
| Sungrow Power Supply |
Dawning Information and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Sungrow Power
The main advantage of trading using opposite Dawning Information and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power'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 |
| Sungrow Power vs. Cultural Investment Holdings | Sungrow Power vs. Kunwu Jiuding Investment | Sungrow Power vs. Sunwave Communications Co | Sungrow Power vs. Luyin Investment 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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