Correlation Between Guangdong Ellington and Dongxing Sec
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By analyzing existing cross correlation between Guangdong Ellington Electronics and Dongxing Sec Co, you can compare the effects of market volatilities on Guangdong Ellington and Dongxing Sec 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 Guangdong Ellington with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Ellington and Dongxing Sec.
Diversification Opportunities for Guangdong Ellington and Dongxing Sec
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Dongxing is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Ellington Electronic and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Guangdong Ellington 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 Guangdong Ellington Electronics are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Guangdong Ellington i.e., Guangdong Ellington and Dongxing Sec go up and down completely randomly.
Pair Corralation between Guangdong Ellington and Dongxing Sec
Assuming the 90 days trading horizon Guangdong Ellington Electronics is expected to generate 0.95 times more return on investment than Dongxing Sec. However, Guangdong Ellington Electronics is 1.05 times less risky than Dongxing Sec. It trades about 0.12 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.08 per unit of risk. If you would invest 686.00 in Guangdong Ellington Electronics on November 3, 2024 and sell it today you would earn a total of 330.00 from holding Guangdong Ellington Electronics or generate 48.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Ellington Electronic vs. Dongxing Sec Co
Performance |
| Timeline |
| Guangdong Ellington |
| Dongxing Sec |
Guangdong Ellington and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Ellington and Dongxing Sec
The main advantage of trading using opposite Guangdong Ellington and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Ellington position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Guangdong Ellington vs. Winner Medical Co | Guangdong Ellington vs. Easyhome New Retail | Guangdong Ellington vs. Eyebright Medical Technology | Guangdong Ellington vs. Tinavi Medical Technologies |
| Dongxing Sec vs. Nanya New Material | Dongxing Sec vs. Jilin OLED Material | Dongxing Sec vs. Ningbo Ligong Online | Dongxing Sec vs. Anhui Gujing Distillery |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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