Correlation Between Dawning Information and Ye Chiu
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By analyzing existing cross correlation between Dawning Information Industry and Ye Chiu Metal, you can compare the effects of market volatilities on Dawning Information and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Ye Chiu.
Diversification Opportunities for Dawning Information and Ye Chiu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and 601388 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Dawning Information i.e., Dawning Information and Ye Chiu go up and down completely randomly.
Pair Corralation between Dawning Information and Ye Chiu
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.43 times more return on investment than Ye Chiu. However, Dawning Information is 1.43 times more volatile than Ye Chiu Metal. It trades about 0.18 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.06 per unit of risk. If you would invest 3,976 in Dawning Information Industry on September 3, 2024 and sell it today you would earn a total of 4,404 from holding Dawning Information Industry or generate 110.76% 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. Ye Chiu Metal
Performance |
| Timeline |
| Dawning Information |
| Ye Chiu Metal |
Dawning Information and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Ye Chiu
The main advantage of trading using opposite Dawning Information and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu'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 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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