Correlation Between AUPU Home and Digital China
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By analyzing existing cross correlation between AUPU Home Style and Digital China Information, you can compare the effects of market volatilities on AUPU Home and Digital China 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 AUPU Home with a short position of Digital China. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Digital China.
Diversification Opportunities for AUPU Home and Digital China
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUPU and Digital is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Digital China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital China Information and AUPU Home 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 AUPU Home Style are associated (or correlated) with Digital China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital China Information has no effect on the direction of AUPU Home i.e., AUPU Home and Digital China go up and down completely randomly.
Pair Corralation between AUPU Home and Digital China
Assuming the 90 days trading horizon AUPU Home is expected to generate 3.45 times less return on investment than Digital China. But when comparing it to its historical volatility, AUPU Home Style is 2.08 times less risky than Digital China. It trades about 0.06 of its potential returns per unit of risk. Digital China Information is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Digital China Information on September 24, 2024 and sell it today you would earn a total of 178.00 from holding Digital China Information or generate 15.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AUPU Home Style vs. Digital China Information
Performance |
Timeline |
AUPU Home Style |
Digital China Information |
AUPU Home and Digital China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AUPU Home and Digital China
The main advantage of trading using opposite AUPU Home and Digital China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Digital China 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 Digital China will offset losses from the drop in Digital China's long position.AUPU Home vs. Agricultural Bank of | AUPU Home vs. Industrial and Commercial | AUPU Home vs. Bank of China | AUPU Home vs. China Construction Bank |
Digital China vs. Anhui Jianghuai Automobile | Digital China vs. Qumei Furniture Group | Digital China vs. Chongqing Changan Automobile | Digital China vs. AUPU Home Style |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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