Correlation Between Duzhe Publishing and Tianjin Silvery
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By analyzing existing cross correlation between Duzhe Publishing Media and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Duzhe Publishing and Tianjin Silvery 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 Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Tianjin Silvery.
Diversification Opportunities for Duzhe Publishing and Tianjin Silvery
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duzhe and Tianjin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon 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 Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Tianjin Silvery
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to under-perform the Tianjin Silvery. But the stock apears to be less risky and, when comparing its historical volatility, Duzhe Publishing Media is 1.09 times less risky than Tianjin Silvery. The stock trades about -0.22 of its potential returns per unit of risk. The Tianjin Silvery Dragon is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 611.00 in Tianjin Silvery Dragon on October 12, 2024 and sell it today you would earn a total of 19.00 from holding Tianjin Silvery Dragon or generate 3.11% 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. Tianjin Silvery Dragon
Performance |
| Timeline |
| Duzhe Publishing Media |
| Tianjin Silvery Dragon |
Duzhe Publishing and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Tianjin Silvery
The main advantage of trading using opposite Duzhe Publishing and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery's long position.| Duzhe Publishing vs. Jinhe Biotechnology Co | Duzhe Publishing vs. China Minmetals Rare | Duzhe Publishing vs. Western Metal Materials | Duzhe Publishing vs. Gansu Huangtai Wine marketing |
| Tianjin Silvery vs. Tonghua Grape Wine | Tianjin Silvery vs. Shenzhen Noposion Agrochemicals | Tianjin Silvery vs. Tibet Huayu Mining | Tianjin Silvery vs. Ye Chiu Metal |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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