Correlation Between Dawning Information and China Shenhua
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By analyzing existing cross correlation between Dawning Information Industry and China Shenhua Energy, you can compare the effects of market volatilities on Dawning Information and China Shenhua 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 China Shenhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and China Shenhua.
Diversification Opportunities for Dawning Information and China Shenhua
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dawning and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and China Shenhua Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shenhua Energy 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 China Shenhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shenhua Energy has no effect on the direction of Dawning Information i.e., Dawning Information and China Shenhua go up and down completely randomly.
Pair Corralation between Dawning Information and China Shenhua
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 3.22 times more return on investment than China Shenhua. However, Dawning Information is 3.22 times more volatile than China Shenhua Energy. It trades about 0.32 of its potential returns per unit of risk. China Shenhua Energy is currently generating about 0.0 per unit of risk. If you would invest 6,120 in Dawning Information Industry on September 1, 2024 and sell it today you would earn a total of 2,360 from holding Dawning Information Industry or generate 38.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. China Shenhua Energy
Performance |
| Timeline |
| Dawning Information |
| China Shenhua Energy |
Dawning Information and China Shenhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and China Shenhua
The main advantage of trading using opposite Dawning Information and China Shenhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, China Shenhua 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 China Shenhua will offset losses from the drop in China Shenhua's long position.| Dawning Information vs. Semiconductor Manufacturing Intl | Dawning Information vs. Anhui Conch Cement | Dawning Information vs. Sungrow Power Supply | Dawning Information vs. Shenzhen New Nanshan |
| China Shenhua vs. Zhejiang Kingland Pipeline | China Shenhua vs. Zhejiang Dahua Technology | China Shenhua vs. Changchun Faway Automobile | China Shenhua vs. Shanghai Lingyun Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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