Correlation Between Shijiazhuang Tonhe and DO Home
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By analyzing existing cross correlation between Shijiazhuang Tonhe Electronics and DO Home Collection, you can compare the effects of market volatilities on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe with a short position of DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shijiazhuang Tonhe and DO Home.
Diversification Opportunities for Shijiazhuang Tonhe and DO Home
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shijiazhuang and 002798 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shijiazhuang Tonhe 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 Shijiazhuang Tonhe 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 Shijiazhuang Tonhe 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 Shijiazhuang Tonhe i.e., Shijiazhuang Tonhe and DO Home go up and down completely randomly.
Pair Corralation between Shijiazhuang Tonhe and DO Home
Assuming the 90 days trading horizon Shijiazhuang Tonhe Electronics is expected to generate 1.08 times more return on investment than DO Home. However, Shijiazhuang Tonhe is 1.08 times more volatile than DO Home Collection. It trades about 0.12 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.1 per unit of risk. If you would invest 1,364 in Shijiazhuang Tonhe Electronics on September 25, 2024 and sell it today you would earn a total of 353.00 from holding Shijiazhuang Tonhe Electronics or generate 25.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shijiazhuang Tonhe Electronics vs. DO Home Collection
Performance |
Timeline |
Shijiazhuang Tonhe |
DO Home Collection |
Shijiazhuang Tonhe and DO Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shijiazhuang Tonhe and DO Home
The main advantage of trading using opposite Shijiazhuang Tonhe and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shijiazhuang Tonhe 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.Shijiazhuang Tonhe vs. Heilongjiang Transport Development | Shijiazhuang Tonhe vs. Aluminum Corp of | Shijiazhuang Tonhe vs. Lander Sports Development | Shijiazhuang Tonhe vs. Zhejiang Yayi Metal |
DO Home vs. Kweichow Moutai Co | DO Home vs. Contemporary Amperex Technology | DO Home vs. G bits Network Technology | DO Home vs. BYD Co Ltd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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