Correlation Between Dalian Thermal and Aerospace
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dalian Thermal Power and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Dalian Thermal and Aerospace 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 Dalian Thermal with a short position of Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and Aerospace.
Diversification Opportunities for Dalian Thermal and Aerospace
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dalian and Aerospace is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech and Dalian Thermal 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 Dalian Thermal Power are associated (or correlated) with Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Dalian Thermal i.e., Dalian Thermal and Aerospace go up and down completely randomly.
Pair Corralation between Dalian Thermal and Aerospace
Assuming the 90 days trading horizon Dalian Thermal Power is expected to generate 1.4 times more return on investment than Aerospace. However, Dalian Thermal is 1.4 times more volatile than Aerospace Hi Tech Holding. It trades about 0.04 of its potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about 0.04 per unit of risk. If you would invest 528.00 in Dalian Thermal Power on September 23, 2024 and sell it today you would earn a total of 241.00 from holding Dalian Thermal Power or generate 45.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Dalian Thermal Power vs. Aerospace Hi Tech Holding
Performance |
Timeline |
Dalian Thermal Power |
Aerospace Hi Tech |
Dalian Thermal and Aerospace Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dalian Thermal and Aerospace
The main advantage of trading using opposite Dalian Thermal and Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal position performs unexpectedly, Aerospace 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 Aerospace will offset losses from the drop in Aerospace's long position.Dalian Thermal vs. PetroChina Co Ltd | Dalian Thermal vs. China Mobile Limited | Dalian Thermal vs. CNOOC Limited | Dalian Thermal vs. Ping An Insurance |
Aerospace vs. China Life Insurance | Aerospace vs. Cinda Securities Co | Aerospace vs. Piotech Inc A | Aerospace vs. Dongxing Sec Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |