Correlation Between DO Home and GalaxyCore
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By analyzing existing cross correlation between DO Home Collection and GalaxyCore, you can compare the effects of market volatilities on DO Home and GalaxyCore 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 GalaxyCore. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and GalaxyCore.
Diversification Opportunities for DO Home and GalaxyCore
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002798 and GalaxyCore is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and GalaxyCore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GalaxyCore 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 GalaxyCore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GalaxyCore has no effect on the direction of DO Home i.e., DO Home and GalaxyCore go up and down completely randomly.
Pair Corralation between DO Home and GalaxyCore
Assuming the 90 days trading horizon DO Home Collection is expected to generate 1.74 times more return on investment than GalaxyCore. However, DO Home is 1.74 times more volatile than GalaxyCore. It trades about 0.13 of its potential returns per unit of risk. GalaxyCore is currently generating about -0.02 per unit of risk. If you would invest 409.00 in DO Home Collection on September 23, 2024 and sell it today you would earn a total of 38.00 from holding DO Home Collection or generate 9.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
DO Home Collection vs. GalaxyCore
Performance |
Timeline |
DO Home Collection |
GalaxyCore |
DO Home and GalaxyCore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DO Home and GalaxyCore
The main advantage of trading using opposite DO Home and GalaxyCore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home position performs unexpectedly, GalaxyCore 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 GalaxyCore will offset losses from the drop in GalaxyCore's 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 |
GalaxyCore vs. Shandong Homey Aquatic | GalaxyCore vs. Nanxing Furniture Machinery | GalaxyCore vs. Shanghai Shuixing Home | GalaxyCore vs. DO Home Collection |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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