Correlation Between Oppein Home and Dongguan Chitwing
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By analyzing existing cross correlation between Oppein Home Group and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Oppein Home and Dongguan Chitwing 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 Oppein Home with a short position of Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Dongguan Chitwing.
Diversification Opportunities for Oppein Home and Dongguan Chitwing
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppein and Dongguan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing and Oppein Home 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 Oppein Home Group are associated (or correlated) with Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Oppein Home i.e., Oppein Home and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Oppein Home and Dongguan Chitwing
Assuming the 90 days trading horizon Oppein Home Group is expected to under-perform the Dongguan Chitwing. But the stock apears to be less risky and, when comparing its historical volatility, Oppein Home Group is 1.64 times less risky than Dongguan Chitwing. The stock trades about -0.09 of its potential returns per unit of risk. The Dongguan Chitwing Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,337 in Dongguan Chitwing Technology on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Dongguan Chitwing Technology or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppein Home Group vs. Dongguan Chitwing Technology
Performance |
| Timeline |
| Oppein Home Group |
| Dongguan Chitwing |
Oppein Home and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Dongguan Chitwing
The main advantage of trading using opposite Oppein Home and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| Oppein Home vs. China Petroleum Chemical | Oppein Home vs. PetroChina Co Ltd | Oppein Home vs. China State Construction | Oppein Home vs. China Railway Group |
| Dongguan Chitwing vs. Agricultural Bank of | Dongguan Chitwing vs. Industrial and Commercial | Dongguan Chitwing vs. Bank of China | Dongguan Chitwing vs. PetroChina Co Ltd |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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