Correlation Between Xinya Electronic and Dhc Software
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By analyzing existing cross correlation between Xinya Electronic Co and Dhc Software Co, you can compare the effects of market volatilities on Xinya Electronic and Dhc Software 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 Xinya Electronic with a short position of Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Dhc Software.
Diversification Opportunities for Xinya Electronic and Dhc Software
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinya and Dhc is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and Dhc Software go up and down completely randomly.
Pair Corralation between Xinya Electronic and Dhc Software
Assuming the 90 days trading horizon Xinya Electronic is expected to generate 2.37 times less return on investment than Dhc Software. But when comparing it to its historical volatility, Xinya Electronic Co is 1.2 times less risky than Dhc Software. It trades about 0.07 of its potential returns per unit of risk. Dhc Software Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 453.00 in Dhc Software Co on September 27, 2024 and sell it today you would earn a total of 285.00 from holding Dhc Software Co or generate 62.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Dhc Software Co
Performance |
| Timeline |
| Xinya Electronic |
| Dhc Software |
Xinya Electronic and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Dhc Software
The main advantage of trading using opposite Xinya Electronic and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, Dhc Software 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| Xinya Electronic vs. Shengtak New Material | Xinya Electronic vs. Ningxia Building Materials | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Shenzhen SDG Information |
| Dhc Software vs. Ming Yang Smart | Dhc Software vs. 159681 | Dhc Software vs. 159005 | Dhc Software vs. Loctek Ergonomic Technology |
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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