Correlation Between China Dongxiang and Aquafil SpA
Can any of the company-specific risk be diversified away by investing in both China Dongxiang and Aquafil SpA 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 China Dongxiang and Aquafil SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Dongxiang Co and Aquafil SpA, you can compare the effects of market volatilities on China Dongxiang and Aquafil SpA 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 China Dongxiang with a short position of Aquafil SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Dongxiang and Aquafil SpA.
Diversification Opportunities for China Dongxiang and Aquafil SpA
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Aquafil is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding China Dongxiang Co and Aquafil SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquafil SpA and China Dongxiang 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 China Dongxiang Co are associated (or correlated) with Aquafil SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquafil SpA has no effect on the direction of China Dongxiang i.e., China Dongxiang and Aquafil SpA go up and down completely randomly.
Pair Corralation between China Dongxiang and Aquafil SpA
If you would invest 182.00 in Aquafil SpA on September 8, 2025 and sell it today you would earn a total of 38.00 from holding Aquafil SpA or generate 20.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.54% |
| Values | Daily Returns |
China Dongxiang Co vs. Aquafil SpA
Performance |
| Timeline |
| China Dongxiang |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Aquafil SpA |
China Dongxiang and Aquafil SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Dongxiang and Aquafil SpA
The main advantage of trading using opposite China Dongxiang and Aquafil SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Dongxiang position performs unexpectedly, Aquafil SpA 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 Aquafil SpA will offset losses from the drop in Aquafil SpA's long position.| China Dongxiang vs. Shanghai Fudan Microelectronics | China Dongxiang vs. United Airlines Holdings | China Dongxiang vs. Richardson Electronics | China Dongxiang vs. BYD Electronic |
| Aquafil SpA vs. Darden Restaurants | Aquafil SpA vs. Black Rock Coffee | Aquafil SpA vs. Salesforce | Aquafil SpA vs. Jones Soda Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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