Correlation Between DO Home and Guangzhou Jointas
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By analyzing existing cross correlation between DO Home Collection and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on DO Home and Guangzhou Jointas 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 DO Home with a short position of Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Guangzhou Jointas.
Diversification Opportunities for DO Home and Guangzhou Jointas
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002798 and Guangzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas and DO 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 DO Home Collection are associated (or correlated) with Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of DO Home i.e., DO Home and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between DO Home and Guangzhou Jointas
Assuming the 90 days trading horizon DO Home Collection is expected to under-perform the Guangzhou Jointas. In addition to that, DO Home is 1.02 times more volatile than Guangzhou Jointas Chemical. It trades about -0.16 of its total potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.13 per unit of volatility. If you would invest 568.00 in Guangzhou Jointas Chemical on September 26, 2024 and sell it today you would lose (60.00) from holding Guangzhou Jointas Chemical or give up 10.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
DO Home Collection vs. Guangzhou Jointas Chemical
Performance |
Timeline |
DO Home Collection |
Guangzhou Jointas |
DO Home and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DO Home and Guangzhou Jointas
The main advantage of trading using opposite DO Home and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.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 |
Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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