Correlation Between DR and Zhejiang Daily
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By analyzing existing cross correlation between DR Limited and Zhejiang Daily Media, you can compare the effects of market volatilities on DR and Zhejiang Daily 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 DR with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of DR and Zhejiang Daily.
Diversification Opportunities for DR and Zhejiang Daily
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between DR and Zhejiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding DR Limited and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media and DR 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 DR Limited are associated (or correlated) with Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of DR i.e., DR and Zhejiang Daily go up and down completely randomly.
Pair Corralation between DR and Zhejiang Daily
Assuming the 90 days trading horizon DR is expected to generate 1.0 times less return on investment than Zhejiang Daily. In addition to that, DR is 1.16 times more volatile than Zhejiang Daily Media. It trades about 0.19 of its total potential returns per unit of risk. Zhejiang Daily Media is currently generating about 0.22 per unit of volatility. If you would invest 798.00 in Zhejiang Daily Media on September 13, 2024 and sell it today you would earn a total of 347.00 from holding Zhejiang Daily Media or generate 43.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
DR Limited vs. Zhejiang Daily Media
Performance |
Timeline |
DR Limited |
Zhejiang Daily Media |
DR and Zhejiang Daily Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DR and Zhejiang Daily
The main advantage of trading using opposite DR and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DR position performs unexpectedly, Zhejiang Daily 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 Zhejiang Daily will offset losses from the drop in Zhejiang Daily's long position.DR vs. YLZ Information Tech | DR vs. Digital China Information | DR vs. CITIC Guoan Information | DR vs. ZJBC Information Technology |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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