Correlation Between Dazhong Transportation and Blue Sail
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dazhong Transportation Group and Blue Sail Medical, you can compare the effects of market volatilities on Dazhong Transportation and Blue Sail 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 Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Blue Sail.
Diversification Opportunities for Dazhong Transportation and Blue Sail
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dazhong and Blue is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical 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 Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of Dazhong Transportation i.e., Dazhong Transportation and Blue Sail go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Blue Sail
Assuming the 90 days trading horizon Dazhong Transportation is expected to generate 9.24 times less return on investment than Blue Sail. In addition to that, Dazhong Transportation is 1.07 times more volatile than Blue Sail Medical. It trades about 0.01 of its total potential returns per unit of risk. Blue Sail Medical is currently generating about 0.09 per unit of volatility. If you would invest 562.00 in Blue Sail Medical on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Blue Sail Medical or generate 3.74% 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. Blue Sail Medical
Performance |
| Timeline |
| Dazhong Transportation |
| Blue Sail Medical |
Dazhong Transportation and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Blue Sail
The main advantage of trading using opposite Dazhong Transportation and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.The idea behind Dazhong Transportation Group and Blue Sail Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Blue Sail vs. Cultural Investment Holdings | Blue Sail vs. Gome Telecom Equipment | Blue Sail vs. Holitech Technology Co | Blue Sail vs. Zotye Automobile 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |