Correlation Between Super Dragon and Xiandai Investment
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Xiandai Investment Co, you can compare the effects of market volatilities on Super Dragon and Xiandai Investment 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 Super Dragon with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Xiandai Investment.
Diversification Opportunities for Super Dragon and Xiandai Investment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Super and Xiandai is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Super Dragon 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 Super Dragon Engineering Plastics are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Super Dragon i.e., Super Dragon and Xiandai Investment go up and down completely randomly.
Pair Corralation between Super Dragon and Xiandai Investment
Assuming the 90 days trading horizon Super Dragon Engineering Plastics is expected to generate 2.29 times more return on investment than Xiandai Investment. However, Super Dragon is 2.29 times more volatile than Xiandai Investment Co. It trades about 0.01 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.03 per unit of risk. If you would invest 3,987 in Super Dragon Engineering Plastics on September 20, 2024 and sell it today you would lose (260.00) from holding Super Dragon Engineering Plastics or give up 6.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Super Dragon Engineering Plast vs. Xiandai Investment Co
Performance |
Timeline |
Super Dragon Enginee |
Xiandai Investment |
Super Dragon and Xiandai Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Super Dragon and Xiandai Investment
The main advantage of trading using opposite Super Dragon and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.Super Dragon vs. Industrial and Commercial | Super Dragon vs. Agricultural Bank of | Super Dragon vs. China Construction Bank | Super Dragon vs. Bank of China |
Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Kweichow Moutai Co | Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. China Mobile Limited |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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