Correlation Between Oppein Home and Dalian Thermal
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By analyzing existing cross correlation between Oppein Home Group and Dalian Thermal Power, you can compare the effects of market volatilities on Oppein Home and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Dalian Thermal.
Diversification Opportunities for Oppein Home and Dalian Thermal
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppein and Dalian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Oppein Home i.e., Oppein Home and Dalian Thermal go up and down completely randomly.
Pair Corralation between Oppein Home and Dalian Thermal
Assuming the 90 days trading horizon Oppein Home Group is expected to generate 0.72 times more return on investment than Dalian Thermal. However, Oppein Home Group is 1.38 times less risky than Dalian Thermal. It trades about 0.06 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about 0.02 per unit of risk. If you would invest 7,380 in Oppein Home Group on September 13, 2024 and sell it today you would earn a total of 185.00 from holding Oppein Home Group or generate 2.51% 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. Dalian Thermal Power
Performance |
| Timeline |
| Oppein Home Group |
| Dalian Thermal Power |
Oppein Home and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Dalian Thermal
The main advantage of trading using opposite Oppein Home and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Oppein Home vs. TongFu Microelectronics Co | Oppein Home vs. Hangzhou Weiguang Electronic | Oppein Home vs. Xinya Electronic Co | Oppein Home vs. Integrated Electronic Systems |
| Dalian Thermal vs. Jinhe Biotechnology Co | Dalian Thermal vs. Jiujiang Shanshui Technology | Dalian Thermal vs. Northking Information Technology | Dalian Thermal vs. Jiangxi JDL Environmental |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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