Correlation Between Dawning Information and Hygon Information
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By analyzing existing cross correlation between Dawning Information Industry and Hygon Information Technology, you can compare the effects of market volatilities on Dawning Information and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Hygon Information.
Diversification Opportunities for Dawning Information and Hygon Information
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dawning and Hygon is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Dawning Information i.e., Dawning Information and Hygon Information go up and down completely randomly.
Pair Corralation between Dawning Information and Hygon Information
Assuming the 90 days trading horizon Dawning Information is expected to generate 1.24 times less return on investment than Hygon Information. But when comparing it to its historical volatility, Dawning Information Industry is 1.07 times less risky than Hygon Information. It trades about 0.07 of its potential returns per unit of risk. Hygon Information Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,411 in Hygon Information Technology on October 16, 2024 and sell it today you would earn a total of 9,929 from holding Hygon Information Technology or generate 225.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Hygon Information Technology
Performance |
| Timeline |
| Dawning Information |
| Hygon Information |
Dawning Information and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Hygon Information
The main advantage of trading using opposite Dawning Information and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Dawning Information vs. Everdisplay Optronics Shanghai | Dawning Information vs. XiaMen HongXin Electron tech | Dawning Information vs. Sportsoul Co Ltd | Dawning Information vs. Caihong Display Devices |
| Hygon Information vs. Songz Automobile Air | Hygon Information vs. Rising Nonferrous Metals | Hygon Information vs. Anhui Jianghuai Automobile | Hygon Information vs. Telling Telecommunication Holding |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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