Correlation Between Sichuan Newsnet and Dongxing Sec
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By analyzing existing cross correlation between Sichuan Newsnet Media and Dongxing Sec Co, you can compare the effects of market volatilities on Sichuan Newsnet and Dongxing Sec 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 Sichuan Newsnet with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Newsnet and Dongxing Sec.
Diversification Opportunities for Sichuan Newsnet and Dongxing Sec
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Dongxing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Newsnet Media and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Sichuan Newsnet 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 Sichuan Newsnet Media are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Sichuan Newsnet i.e., Sichuan Newsnet and Dongxing Sec go up and down completely randomly.
Pair Corralation between Sichuan Newsnet and Dongxing Sec
Assuming the 90 days trading horizon Sichuan Newsnet Media is expected to generate 1.22 times more return on investment than Dongxing Sec. However, Sichuan Newsnet is 1.22 times more volatile than Dongxing Sec Co. It trades about 0.14 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.16 per unit of risk. If you would invest 1,192 in Sichuan Newsnet Media on September 23, 2024 and sell it today you would earn a total of 484.00 from holding Sichuan Newsnet Media or generate 40.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sichuan Newsnet Media vs. Dongxing Sec Co
Performance |
Timeline |
Sichuan Newsnet Media |
Dongxing Sec |
Sichuan Newsnet and Dongxing Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sichuan Newsnet and Dongxing Sec
The main advantage of trading using opposite Sichuan Newsnet and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Newsnet position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.Sichuan Newsnet vs. Qumei Furniture Group | Sichuan Newsnet vs. Shenzhen Noposion Agrochemicals | Sichuan Newsnet vs. Luolai Home Textile | Sichuan Newsnet vs. Vohringer Home Technology |
Dongxing Sec vs. ZJBC Information Technology | Dongxing Sec vs. Lander Sports Development | Dongxing Sec vs. Sichuan Newsnet Media | Dongxing Sec vs. YLZ Information Tech |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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