Correlation Between Duzhe Publishing and Changchun Faway
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By analyzing existing cross correlation between Duzhe Publishing Media and Changchun Faway Automobile, you can compare the effects of market volatilities on Duzhe Publishing and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Changchun Faway.
Diversification Opportunities for Duzhe Publishing and Changchun Faway
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duzhe and Changchun is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Changchun Faway go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Changchun Faway
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 1.29 times more return on investment than Changchun Faway. However, Duzhe Publishing is 1.29 times more volatile than Changchun Faway Automobile. It trades about 0.04 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.04 per unit of risk. If you would invest 570.00 in Duzhe Publishing Media on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Duzhe Publishing Media or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Changchun Faway Automobile
Performance |
| Timeline |
| Duzhe Publishing Media |
| Changchun Faway Auto |
Duzhe Publishing and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Changchun Faway
The main advantage of trading using opposite Duzhe Publishing and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Duzhe Publishing vs. Gansu Jiu Steel | Duzhe Publishing vs. Ming Yang Smart | Duzhe Publishing vs. Aba Chemicals Corp | Duzhe Publishing vs. Loctek Ergonomic Technology |
| Changchun Faway vs. PetroChina Co Ltd | Changchun Faway vs. China Mobile Limited | Changchun Faway vs. Industrial and Commercial | Changchun Faway vs. China Life Insurance |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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