Correlation Between Chengdu Xingrong and Wintao Communications
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Wintao Communications Co, you can compare the effects of market volatilities on Chengdu Xingrong and Wintao Communications 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 Chengdu Xingrong with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Wintao Communications.
Diversification Opportunities for Chengdu Xingrong and Wintao Communications
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengdu and Wintao is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Wintao Communications go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Wintao Communications
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the Wintao Communications. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 2.13 times less risky than Wintao Communications. The stock trades about -0.12 of its potential returns per unit of risk. The Wintao Communications Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,275 in Wintao Communications Co on November 1, 2024 and sell it today you would lose (82.00) from holding Wintao Communications Co or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Wintao Communications Co
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Wintao Communications |
Chengdu Xingrong and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Wintao Communications
The main advantage of trading using opposite Chengdu Xingrong and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Chengdu Xingrong vs. Industrial and Commercial | Chengdu Xingrong vs. China Construction Bank | Chengdu Xingrong vs. Agricultural Bank of | Chengdu Xingrong vs. Bank of China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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