Correlation Between Duzhe Publishing and Xilong Chemical
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By analyzing existing cross correlation between Duzhe Publishing Media and Xilong Chemical Co, you can compare the effects of market volatilities on Duzhe Publishing and Xilong Chemical 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 Duzhe Publishing with a short position of Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Xilong Chemical.
Diversification Opportunities for Duzhe Publishing and Xilong Chemical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duzhe and Xilong is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical and Duzhe Publishing 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 Duzhe Publishing Media are associated (or correlated) with Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Xilong Chemical go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Xilong Chemical
Assuming the 90 days trading horizon Duzhe Publishing is expected to generate 1.82 times less return on investment than Xilong Chemical. But when comparing it to its historical volatility, Duzhe Publishing Media is 1.17 times less risky than Xilong Chemical. It trades about 0.02 of its potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 708.00 in Xilong Chemical Co on October 18, 2024 and sell it today you would earn a total of 103.00 from holding Xilong Chemical Co or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Xilong Chemical Co
Performance |
| Timeline |
| Duzhe Publishing Media |
| Xilong Chemical |
Duzhe Publishing and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Xilong Chemical
The main advantage of trading using opposite Duzhe Publishing and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.| Duzhe Publishing vs. China Everbright Bank | Duzhe Publishing vs. Gansu Huangtai Wine marketing | Duzhe Publishing vs. JiShi Media Co | Duzhe Publishing vs. Panda Financial Holding |
| Xilong Chemical vs. Beijing Kaiwen Education | Xilong Chemical vs. Xinhua Winshare Publishing | Xilong Chemical vs. Duzhe Publishing Media | Xilong Chemical vs. Hangzhou Pinming Software |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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