Correlation Between Wasu Media and Chengdu B
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By analyzing existing cross correlation between Wasu Media Holding and Chengdu B ray Media, you can compare the effects of market volatilities on Wasu Media and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasu Media and Chengdu B.
Diversification Opportunities for Wasu Media and Chengdu B
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wasu and Chengdu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wasu Media Holding and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Wasu Media i.e., Wasu Media and Chengdu B go up and down completely randomly.
Pair Corralation between Wasu Media and Chengdu B
Assuming the 90 days trading horizon Wasu Media Holding is expected to generate 0.59 times more return on investment than Chengdu B. However, Wasu Media Holding is 1.7 times less risky than Chengdu B. It trades about -0.18 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about -0.19 per unit of risk. If you would invest 750.00 in Wasu Media Holding on October 23, 2024 and sell it today you would lose (49.00) from holding Wasu Media Holding or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasu Media Holding vs. Chengdu B ray Media
Performance |
| Timeline |
| Wasu Media Holding |
| Chengdu B ray |
Wasu Media and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasu Media and Chengdu B
The main advantage of trading using opposite Wasu Media and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasu Media position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Wasu Media vs. Agricultural Bank of | Wasu Media vs. Industrial and Commercial | Wasu Media vs. Bank of China | Wasu Media vs. China Construction Bank |
| Chengdu B vs. Cambricon Technologies Corp | Chengdu B vs. SGSG Sciencetechnology Co | Chengdu B vs. Loongson Technology Corp | Chengdu B vs. Zhonghang Electronic Measuring |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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