Correlation Between Chengdu Spaceon and DO Home
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and DO Home Collection, you can compare the effects of market volatilities on Chengdu Spaceon and DO Home 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 Chengdu Spaceon with a short position of DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and DO Home.
Diversification Opportunities for Chengdu Spaceon and DO Home
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and 002798 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection and Chengdu Spaceon 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 Chengdu Spaceon Electronics are associated (or correlated) with DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and DO Home go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and DO Home
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 1.13 times less return on investment than DO Home. In addition to that, Chengdu Spaceon is 1.0 times more volatile than DO Home Collection. It trades about 0.21 of its total potential returns per unit of risk. DO Home Collection is currently generating about 0.24 per unit of volatility. If you would invest 310.00 in DO Home Collection on September 13, 2024 and sell it today you would earn a total of 167.00 from holding DO Home Collection or generate 53.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Spaceon Electronics vs. DO Home Collection
Performance |
Timeline |
Chengdu Spaceon Elec |
DO Home Collection |
Chengdu Spaceon and DO Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Spaceon and DO Home
The main advantage of trading using opposite Chengdu Spaceon and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.Chengdu Spaceon vs. Ningbo Ligong Online | Chengdu Spaceon vs. Sichuan Yahua Industrial | Chengdu Spaceon vs. Shenzhen Topway Video | Chengdu Spaceon vs. Keda Clean Energy |
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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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