Correlation Between Nantong Haixing and Dhc Software
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By analyzing existing cross correlation between Nantong Haixing Electronics and Dhc Software Co, you can compare the effects of market volatilities on Nantong Haixing and Dhc Software 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 Nantong Haixing with a short position of Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Dhc Software.
Diversification Opportunities for Nantong Haixing and Dhc Software
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nantong and Dhc is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software and Nantong Haixing 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 Nantong Haixing Electronics are associated (or correlated) with Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Dhc Software go up and down completely randomly.
Pair Corralation between Nantong Haixing and Dhc Software
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the Dhc Software. But the stock apears to be less risky and, when comparing its historical volatility, Nantong Haixing Electronics is 3.12 times less risky than Dhc Software. The stock trades about -0.11 of its potential returns per unit of risk. The Dhc Software Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 602.00 in Dhc Software Co on August 29, 2024 and sell it today you would earn a total of 199.00 from holding Dhc Software Co or generate 33.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Dhc Software Co
Performance |
| Timeline |
| Nantong Haixing Elec |
| Dhc Software |
Nantong Haixing and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Dhc Software
The main advantage of trading using opposite Nantong Haixing and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Dhc Software 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| Nantong Haixing vs. Kweichow Moutai Co | Nantong Haixing vs. Shenzhen Mindray Bio Medical | Nantong Haixing vs. Jiangsu Pacific Quartz | Nantong Haixing vs. G bits Network Technology |
| Dhc Software vs. Jiaozuo Wanfang Aluminum | Dhc Software vs. Sino Platinum Metals Co | Dhc Software vs. Tibet Huayu Mining | Dhc Software vs. Heilongjiang Transport Development |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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