Correlation Between Discount Print and China Dongsheng
Can any of the company-specific risk be diversified away by investing in both Discount Print and China Dongsheng at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Discount Print and China Dongsheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Discount Print USA and China Dongsheng International, you can compare the effects of market volatilities on Discount Print and China Dongsheng 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 Discount Print with a short position of China Dongsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Discount Print and China Dongsheng.
Diversification Opportunities for Discount Print and China Dongsheng
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Discount and China is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Discount Print USA and China Dongsheng International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Dongsheng Inte and Discount Print 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 Discount Print USA are associated (or correlated) with China Dongsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Dongsheng Inte has no effect on the direction of Discount Print i.e., Discount Print and China Dongsheng go up and down completely randomly.
Pair Corralation between Discount Print and China Dongsheng
Given the investment horizon of 90 days Discount Print USA is expected to under-perform the China Dongsheng. In addition to that, Discount Print is 1.42 times more volatile than China Dongsheng International. It trades about -0.1 of its total potential returns per unit of risk. China Dongsheng International is currently generating about -0.1 per unit of volatility. If you would invest 0.20 in China Dongsheng International on August 29, 2024 and sell it today you would lose (0.07) from holding China Dongsheng International or give up 35.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Discount Print USA vs. China Dongsheng International
Performance |
| Timeline |
| Discount Print USA |
| China Dongsheng Inte |
Discount Print and China Dongsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Discount Print and China Dongsheng
The main advantage of trading using opposite Discount Print and China Dongsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Discount Print position performs unexpectedly, China Dongsheng 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 China Dongsheng will offset losses from the drop in China Dongsheng's long position.| Discount Print vs. ABIVAX Socit Anonyme | Discount Print vs. Pinnacle Sherman Multi Strategy | Discount Print vs. Morningstar Unconstrained Allocation | Discount Print vs. SPACE |
| China Dongsheng vs. C2E Energy | China Dongsheng vs. Tanke Biosciences | China Dongsheng vs. Supurva Healthcare Group | China Dongsheng vs. Kasten Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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