Correlation Between Digiwin Software and Nantong Jiangshan

Can any of the company-specific risk be diversified away by investing in both Digiwin Software and Nantong Jiangshan at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Digiwin Software and Nantong Jiangshan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Digiwin Software Co and Nantong Jiangshan Agrochemical, you can compare the effects of market volatilities on Digiwin Software and Nantong Jiangshan 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 Digiwin Software with a short position of Nantong Jiangshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digiwin Software and Nantong Jiangshan.

Diversification Opportunities for Digiwin Software and Nantong Jiangshan

0.0

Correlation Coefficient

Digiwin Software  Nantong Jiangshan

Pay attention - limited upside

The 3 months correlation between Digiwin and Nantong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digiwin Software Co and Nantong Jiangshan Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Jiangshan and Digiwin Software 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 Digiwin Software Co are associated (or correlated) with Nantong Jiangshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Jiangshan has no effect on the direction of Digiwin Software i.e., Digiwin Software and Nantong Jiangshan go up and down completely randomly.

Pair Corralation between Digiwin Software and Nantong Jiangshan

If you would invest (100.00) in Nantong Jiangshan Agrochemical on October 24, 2024 and sell it today you would earn a total of  100.00  from holding Nantong Jiangshan Agrochemical or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Digiwin Software Co  vs.  Nantong Jiangshan Agrochemical

Digiwin Software

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Digiwin Software Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Digiwin Software may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Nantong Jiangshan

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Nantong Jiangshan Agrochemical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Nantong Jiangshan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Digiwin Software and Nantong Jiangshan

The main advantage of trading using opposite Digiwin Software and Nantong Jiangshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digiwin Software position performs unexpectedly, Nantong Jiangshan 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 Nantong Jiangshan will offset losses from the drop in Nantong Jiangshan's long position.

The idea behind Digiwin Software Co and Nantong Jiangshan Agrochemical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.