Correlation Between Duzhe Publishing and Xiamen Jihong
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By analyzing existing cross correlation between Duzhe Publishing Media and Xiamen Jihong Package, you can compare the effects of market volatilities on Duzhe Publishing and Xiamen Jihong 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 Duzhe Publishing with a short position of Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Xiamen Jihong.
Diversification Opportunities for Duzhe Publishing and Xiamen Jihong
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duzhe and Xiamen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package and Duzhe Publishing 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 Duzhe Publishing Media are associated (or correlated) with Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Xiamen Jihong
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 0.93 times more return on investment than Xiamen Jihong. However, Duzhe Publishing Media is 1.07 times less risky than Xiamen Jihong. It trades about 0.02 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.01 per unit of risk. If you would invest 554.00 in Duzhe Publishing Media on October 3, 2024 and sell it today you would earn a total of 61.00 from holding Duzhe Publishing Media or generate 11.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Duzhe Publishing Media vs. Xiamen Jihong Package
Performance |
Timeline |
Duzhe Publishing Media |
Xiamen Jihong Package |
Duzhe Publishing and Xiamen Jihong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Duzhe Publishing and Xiamen Jihong
The main advantage of trading using opposite Duzhe Publishing and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.Duzhe Publishing vs. Cloud Live Technology | Duzhe Publishing vs. Nanjing Putian Telecommunications | Duzhe Publishing vs. Tianjin Realty Development | Duzhe Publishing vs. Shenzhen Coship Electronics |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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