Correlation Between Dawning Information and Hubei Jumpcan
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By analyzing existing cross correlation between Dawning Information Industry and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Dawning Information and Hubei Jumpcan 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 Hubei Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Hubei Jumpcan.
Diversification Opportunities for Dawning Information and Hubei Jumpcan
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dawning and Hubei is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma 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 Hubei Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Dawning Information i.e., Dawning Information and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Dawning Information and Hubei Jumpcan
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 2.3 times more return on investment than Hubei Jumpcan. However, Dawning Information is 2.3 times more volatile than Hubei Jumpcan Pharmaceutical. It trades about 0.16 of its potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.06 per unit of risk. If you would invest 6,650 in Dawning Information Industry on September 5, 2024 and sell it today you would earn a total of 1,135 from holding Dawning Information Industry or generate 17.07% 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. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Dawning Information |
| Hubei Jumpcan Pharma |
Dawning Information and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Hubei Jumpcan
The main advantage of trading using opposite Dawning Information and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Hubei Jumpcan 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 Hubei Jumpcan will offset losses from the drop in Hubei Jumpcan'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 |
| Hubei Jumpcan vs. Lonkey Industrial Co | Hubei Jumpcan vs. Gem Year Industrial Co | Hubei Jumpcan vs. Longmaster Information Tech | Hubei Jumpcan vs. Dawning Information Industry |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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