Correlation Between Dawning Information and Guangzhou Haige
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By analyzing existing cross correlation between Dawning Information Industry and Guangzhou Haige Communications, you can compare the effects of market volatilities on Dawning Information and Guangzhou Haige 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 Dawning Information with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Guangzhou Haige.
Diversification Opportunities for Dawning Information and Guangzhou Haige
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and Guangzhou is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Dawning Information 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 Dawning Information Industry are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Dawning Information i.e., Dawning Information and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Dawning Information and Guangzhou Haige
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.31 times more return on investment than Guangzhou Haige. However, Dawning Information is 1.31 times more volatile than Guangzhou Haige Communications. It trades about 0.33 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.19 per unit of risk. If you would invest 3,432 in Dawning Information Industry on September 6, 2024 and sell it today you would earn a total of 4,368 from holding Dawning Information Industry or generate 127.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Dawning Information Industry vs. Guangzhou Haige Communications
Performance |
Timeline |
Dawning Information |
Guangzhou Haige Comm |
Dawning Information and Guangzhou Haige Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dawning Information and Guangzhou Haige
The main advantage of trading using opposite Dawning Information and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.Dawning Information vs. Xiangyu Medical Co | Dawning Information vs. Metro Investment Development | Dawning Information vs. Guangzhou Boji Medical | Dawning Information vs. Cowealth Medical China |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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