Correlation Between Dawning Information and Shanghai Xinhua
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By analyzing existing cross correlation between Dawning Information Industry and Shanghai Xinhua Media, you can compare the effects of market volatilities on Dawning Information and Shanghai Xinhua 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 Shanghai Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Shanghai Xinhua.
Diversification Opportunities for Dawning Information and Shanghai Xinhua
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Shanghai Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Xinhua Media 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 Shanghai Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Xinhua Media has no effect on the direction of Dawning Information i.e., Dawning Information and Shanghai Xinhua go up and down completely randomly.
Pair Corralation between Dawning Information and Shanghai Xinhua
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.28 times more return on investment than Shanghai Xinhua. However, Dawning Information is 1.28 times more volatile than Shanghai Xinhua Media. It trades about 0.26 of its potential returns per unit of risk. Shanghai Xinhua Media is currently generating about 0.02 per unit of risk. If you would invest 6,650 in Dawning Information Industry on September 3, 2024 and sell it today you would earn a total of 1,830 from holding Dawning Information Industry or generate 27.52% 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. Shanghai Xinhua Media
Performance |
| Timeline |
| Dawning Information |
| Shanghai Xinhua Media |
Dawning Information and Shanghai Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Shanghai Xinhua
The main advantage of trading using opposite Dawning Information and Shanghai Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Shanghai Xinhua 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 Shanghai Xinhua will offset losses from the drop in Shanghai Xinhua'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 |
| Shanghai Xinhua vs. Anhui Transport Consulting | Shanghai Xinhua vs. Jiangxi Naipu Mining | Shanghai Xinhua vs. Shengda Mining Co | Shanghai Xinhua vs. Broadex Technologies Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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