Correlation Between Wasu Media and Xinjiang Tianrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wasu Media Holding and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Wasu Media and Xinjiang Tianrun 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 Wasu Media with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasu Media and Xinjiang Tianrun.
Diversification Opportunities for Wasu Media and Xinjiang Tianrun
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wasu and Xinjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wasu Media Holding and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and Wasu Media 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 Wasu Media Holding are associated (or correlated) with Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Wasu Media i.e., Wasu Media and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Wasu Media and Xinjiang Tianrun
Assuming the 90 days trading horizon Wasu Media Holding is expected to generate 1.02 times more return on investment than Xinjiang Tianrun. However, Wasu Media is 1.02 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.02 per unit of risk. If you would invest 684.00 in Wasu Media Holding on November 7, 2024 and sell it today you would earn a total of 35.00 from holding Wasu Media Holding or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasu Media Holding vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Wasu Media Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xinjiang Tianrun Dairy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wasu Media and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasu Media and Xinjiang Tianrun
The main advantage of trading using opposite Wasu Media and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasu Media position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.The idea behind Wasu Media Holding and Xinjiang Tianrun Dairy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |