Correlation Between Dazhong Transportation and Chinese Universe
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By analyzing existing cross correlation between Dazhong Transportation Group and Chinese Universe Publishing, you can compare the effects of market volatilities on Dazhong Transportation and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Chinese Universe.
Diversification Opportunities for Dazhong Transportation and Chinese Universe
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dazhong and Chinese is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Dazhong Transportation i.e., Dazhong Transportation and Chinese Universe go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Chinese Universe
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 1.08 times more return on investment than Chinese Universe. However, Dazhong Transportation is 1.08 times more volatile than Chinese Universe Publishing. It trades about 0.01 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.29 per unit of risk. If you would invest 26.00 in Dazhong Transportation Group on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Dazhong Transportation Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Chinese Universe Publishing
Performance |
| Timeline |
| Dazhong Transportation |
| Chinese Universe Pub |
Dazhong Transportation and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Chinese Universe
The main advantage of trading using opposite Dazhong Transportation and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Dazhong Transportation vs. Uxi Unicomp Technology | Dazhong Transportation vs. Jiaozuo Wanfang Aluminum | Dazhong Transportation vs. CITIC Metal Co | Dazhong Transportation vs. Linewell Software Co |
| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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