Correlation Between Dawning Information and Hangzhou Minsheng
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By analyzing existing cross correlation between Dawning Information Industry and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Dawning Information and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Hangzhou Minsheng.
Diversification Opportunities for Dawning Information and Hangzhou Minsheng
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dawning and Hangzhou is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Dawning Information i.e., Dawning Information and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Dawning Information and Hangzhou Minsheng
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 0.99 times more return on investment than Hangzhou Minsheng. However, Dawning Information Industry is 1.01 times less risky than Hangzhou Minsheng. It trades about 0.1 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about 0.0 per unit of risk. If you would invest 3,200 in Dawning Information Industry on October 18, 2024 and sell it today you would earn a total of 3,249 from holding Dawning Information Industry or generate 101.53% 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. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Dawning Information |
| Hangzhou Minsheng |
Dawning Information and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Hangzhou Minsheng
The main advantage of trading using opposite Dawning Information and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Dawning Information vs. Shuhua Sports Co | Dawning Information vs. Fujian Longzhou Transportation | Dawning Information vs. Zhengzhou Qianweiyangchu Food | Dawning Information vs. Suzhou Weizhixiang Food |
| Hangzhou Minsheng vs. Jinhe Biotechnology Co | Hangzhou Minsheng vs. Dawning Information Industry | Hangzhou Minsheng vs. Wuhan Hvsen Biotechnology | Hangzhou Minsheng vs. East Money Information |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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