Correlation Between Deutsche Wohnen and TIMES CHINA
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By analyzing existing cross correlation between Deutsche Wohnen SE and TIMES CHINA HLDGS, you can compare the effects of market volatilities on Deutsche Wohnen and TIMES CHINA 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 Deutsche Wohnen with a short position of TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Wohnen and TIMES CHINA.
Diversification Opportunities for Deutsche Wohnen and TIMES CHINA
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and TIMES is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Wohnen SE and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS and Deutsche Wohnen 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 Deutsche Wohnen SE are associated (or correlated) with TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of Deutsche Wohnen i.e., Deutsche Wohnen and TIMES CHINA go up and down completely randomly.
Pair Corralation between Deutsche Wohnen and TIMES CHINA
Assuming the 90 days trading horizon Deutsche Wohnen SE is expected to under-perform the TIMES CHINA. But the stock apears to be less risky and, when comparing its historical volatility, Deutsche Wohnen SE is 11.31 times less risky than TIMES CHINA. The stock trades about -0.06 of its potential returns per unit of risk. The TIMES CHINA HLDGS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.95 in TIMES CHINA HLDGS on September 23, 2024 and sell it today you would earn a total of 2.65 from holding TIMES CHINA HLDGS or generate 278.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Deutsche Wohnen SE vs. TIMES CHINA HLDGS
Performance |
Timeline |
Deutsche Wohnen SE |
TIMES CHINA HLDGS |
Deutsche Wohnen and TIMES CHINA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Deutsche Wohnen and TIMES CHINA
The main advantage of trading using opposite Deutsche Wohnen and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Wohnen position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.Deutsche Wohnen vs. Gateway Real Estate | Deutsche Wohnen vs. TIMES CHINA HLDGS | Deutsche Wohnen vs. LANDSEA HOMES P | Deutsche Wohnen vs. Greenland Hong Kong |
TIMES CHINA vs. Deutsche Wohnen SE | TIMES CHINA vs. Gateway Real Estate | TIMES CHINA vs. LANDSEA HOMES P | TIMES CHINA vs. Greenland Hong Kong |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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