Correlation Between Mercurity Fintech and Dunxin Financial
Can any of the company-specific risk be diversified away by investing in both Mercurity Fintech and Dunxin Financial 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 Mercurity Fintech and Dunxin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercurity Fintech Holding and Dunxin Financial Holdings, you can compare the effects of market volatilities on Mercurity Fintech and Dunxin Financial 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 Mercurity Fintech with a short position of Dunxin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercurity Fintech and Dunxin Financial.
Diversification Opportunities for Mercurity Fintech and Dunxin Financial
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercurity and Dunxin is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and Dunxin Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunxin Financial Holdings and Mercurity Fintech 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 Mercurity Fintech Holding are associated (or correlated) with Dunxin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunxin Financial Holdings has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and Dunxin Financial go up and down completely randomly.
Pair Corralation between Mercurity Fintech and Dunxin Financial
If you would invest 121.00 in Mercurity Fintech Holding on November 1, 2024 and sell it today you would earn a total of 583.00 from holding Mercurity Fintech Holding or generate 481.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
Mercurity Fintech Holding vs. Dunxin Financial Holdings
Performance |
| Timeline |
| Mercurity Fintech Holding |
| Dunxin Financial Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mercurity Fintech and Dunxin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercurity Fintech and Dunxin Financial
The main advantage of trading using opposite Mercurity Fintech and Dunxin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech position performs unexpectedly, Dunxin Financial 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 Dunxin Financial will offset losses from the drop in Dunxin Financial's long position.| Mercurity Fintech vs. Scully Royalty | Mercurity Fintech vs. Donnelley Financial Solutions | Mercurity Fintech vs. Heritage Global | Mercurity Fintech vs. Oppenheimer Holdings |
| Dunxin Financial vs. ReTo Eco Solutions | Dunxin Financial vs. Four Seasons Education | Dunxin Financial vs. Mercurity Fintech Holding | Dunxin Financial vs. Baosheng Media Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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