Correlation Between Wasu Media and Sobute New
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By analyzing existing cross correlation between Wasu Media Holding and Sobute New Materials, you can compare the effects of market volatilities on Wasu Media and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasu Media and Sobute New.
Diversification Opportunities for Wasu Media and Sobute New
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wasu and Sobute is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Wasu Media Holding and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of Wasu Media i.e., Wasu Media and Sobute New go up and down completely randomly.
Pair Corralation between Wasu Media and Sobute New
Assuming the 90 days trading horizon Wasu Media Holding is expected to under-perform the Sobute New. In addition to that, Wasu Media is 1.2 times more volatile than Sobute New Materials. It trades about -0.2 of its total potential returns per unit of risk. Sobute New Materials is currently generating about -0.15 per unit of volatility. If you would invest 770.00 in Sobute New Materials on October 24, 2024 and sell it today you would lose (37.00) from holding Sobute New Materials or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasu Media Holding vs. Sobute New Materials
Performance |
| Timeline |
| Wasu Media Holding |
| Sobute New Materials |
Wasu Media and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasu Media and Sobute New
The main advantage of trading using opposite Wasu Media and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasu Media position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.| Wasu Media vs. Bomesc Offshore Engineering | Wasu Media vs. Offshore Oil Engineering | Wasu Media vs. Weihai Honglin Electronic | Wasu Media vs. Changchun UP Optotech |
| Sobute New vs. Xinya Electronic Co | Sobute New vs. Jiangyin Jianghua Microelectronics | Sobute New vs. Weihai Honglin Electronic | Sobute New vs. Wasu Media Holding |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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