Correlation Between Dazhong Transportation and Shandong
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By analyzing existing cross correlation between Dazhong Transportation Group and Shandong Hi Speed RoadBridge, you can compare the effects of market volatilities on Dazhong Transportation and Shandong 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 Dazhong Transportation with a short position of Shandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Shandong.
Diversification Opportunities for Dazhong Transportation and Shandong
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dazhong and Shandong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Shandong Hi Speed RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hi Speed and Dazhong Transportation 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 Dazhong Transportation Group are associated (or correlated) with Shandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hi Speed has no effect on the direction of Dazhong Transportation i.e., Dazhong Transportation and Shandong go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Shandong
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 1.44 times more return on investment than Shandong. However, Dazhong Transportation is 1.44 times more volatile than Shandong Hi Speed RoadBridge. It trades about 0.15 of its potential returns per unit of risk. Shandong Hi Speed RoadBridge is currently generating about 0.13 per unit of risk. If you would invest 18.00 in Dazhong Transportation Group on September 5, 2024 and sell it today you would earn a total of 8.00 from holding Dazhong Transportation Group or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Shandong Hi Speed RoadBridge
Performance |
| Timeline |
| Dazhong Transportation |
| Shandong Hi Speed |
Dazhong Transportation and Shandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Shandong
The main advantage of trading using opposite Dazhong Transportation and Shandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation position performs unexpectedly, Shandong 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 Shandong will offset losses from the drop in Shandong's long position.| Dazhong Transportation vs. Kweichow Moutai Co | Dazhong Transportation vs. NAURA Technology Group | Dazhong Transportation vs. Zhejiang Orient Gene | Dazhong Transportation vs. APT Medical |
| Shandong vs. Guangdong Jinma Entertainment | Shandong vs. Zhejiang Daily Media | Shandong vs. Duzhe Publishing Media | Shandong vs. JiShi Media Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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