Correlation Between Dawning Information and A Zenith
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By analyzing existing cross correlation between Dawning Information Industry and A Zenith Home Furnishings, you can compare the effects of market volatilities on Dawning Information and A Zenith 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 A Zenith. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and A Zenith.
Diversification Opportunities for Dawning Information and A Zenith
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dawning and 603389 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A Zenith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of Dawning Information i.e., Dawning Information and A Zenith go up and down completely randomly.
Pair Corralation between Dawning Information and A Zenith
Assuming the 90 days trading horizon Dawning Information is expected to generate 3.27 times less return on investment than A Zenith. But when comparing it to its historical volatility, Dawning Information Industry is 1.51 times less risky than A Zenith. It trades about 0.21 of its potential returns per unit of risk. A Zenith Home Furnishings is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 510.00 in A Zenith Home Furnishings on November 29, 2024 and sell it today you would earn a total of 169.00 from holding A Zenith Home Furnishings or generate 33.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Dawning Information Industry vs. A Zenith Home Furnishings
Performance |
| Timeline |
| Dawning Information |
| A Zenith Home |
Dawning Information and A Zenith Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and A Zenith
The main advantage of trading using opposite Dawning Information and A Zenith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, A Zenith 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 A Zenith will offset losses from the drop in A Zenith's long position.| Dawning Information vs. Highbroad Advanced Material | Dawning Information vs. Shaanxi Broadcast TV | Dawning Information vs. Chongqing Road Bridge | Dawning Information vs. Ningxia Younglight Chemicals |
| A Zenith vs. Weihai Honglin Electronic | A Zenith vs. Fujian Nebula Electronics | A Zenith vs. Hangzhou Zhongya Machinery | A Zenith vs. Baoding Dongli Machinery |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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