Correlation Between Vanfund Urban and Wuxi Lead
Specify exactly 2 symbols:
By analyzing existing cross correlation between Vanfund Urban Investment and Wuxi Lead Auto, you can compare the effects of market volatilities on Vanfund Urban and Wuxi Lead 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 Vanfund Urban with a short position of Wuxi Lead. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Wuxi Lead.
Diversification Opportunities for Vanfund Urban and Wuxi Lead
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanfund and Wuxi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Wuxi Lead Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Lead Auto and Vanfund Urban 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 Vanfund Urban Investment are associated (or correlated) with Wuxi Lead. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Lead Auto has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Wuxi Lead go up and down completely randomly.
Pair Corralation between Vanfund Urban and Wuxi Lead
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 82.86 times less return on investment than Wuxi Lead. But when comparing it to its historical volatility, Vanfund Urban Investment is 1.84 times less risky than Wuxi Lead. It trades about 0.0 of its potential returns per unit of risk. Wuxi Lead Auto is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,878 in Wuxi Lead Auto on September 1, 2024 and sell it today you would earn a total of 484.00 from holding Wuxi Lead Auto or generate 25.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Wuxi Lead Auto
Performance |
| Timeline |
| Vanfund Urban Investment |
| Wuxi Lead Auto |
Vanfund Urban and Wuxi Lead Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Wuxi Lead
The main advantage of trading using opposite Vanfund Urban and Wuxi Lead positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Wuxi Lead 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 Wuxi Lead will offset losses from the drop in Wuxi Lead's long position.| Vanfund Urban vs. Cultural Investment Holdings | Vanfund Urban vs. Gome Telecom Equipment | Vanfund Urban vs. Bus Online Co | Vanfund Urban vs. Holitech Technology Co |
| Wuxi Lead vs. Ningbo Tip Rubber | Wuxi Lead vs. Hainan Mining Co | Wuxi Lead vs. Hangzhou Gaoxin Rubber | Wuxi Lead vs. Tianjin Pengling Rubber |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |