Correlation Between Hygon Information and Dawning Information
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By analyzing existing cross correlation between Hygon Information Technology and Dawning Information Industry, you can compare the effects of market volatilities on Hygon Information and Dawning Information 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 Hygon Information with a short position of Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Dawning Information.
Diversification Opportunities for Hygon Information and Dawning Information
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hygon and Dawning is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information and Hygon Information 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 Hygon Information Technology are associated (or correlated) with Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Hygon Information i.e., Hygon Information and Dawning Information go up and down completely randomly.
Pair Corralation between Hygon Information and Dawning Information
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.07 times more return on investment than Dawning Information. However, Hygon Information is 1.07 times more volatile than Dawning Information Industry. It trades about 0.08 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.07 per unit of risk. If you would invest 4,411 in Hygon Information Technology on October 16, 2024 and sell it today you would earn a total of 9,929 from holding Hygon Information Technology or generate 225.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Dawning Information Industry
Performance |
| Timeline |
| Hygon Information |
| Dawning Information |
Hygon Information and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Dawning Information
The main advantage of trading using opposite Hygon Information and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Hygon Information vs. Songz Automobile Air | Hygon Information vs. Rising Nonferrous Metals | Hygon Information vs. Anhui Jianghuai Automobile | Hygon Information vs. Telling Telecommunication Holding |
| Dawning Information vs. Everdisplay Optronics Shanghai | Dawning Information vs. XiaMen HongXin Electron tech | Dawning Information vs. Sportsoul Co Ltd | Dawning Information vs. Caihong Display Devices |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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