Correlation Between Shenyang Huitian and Wintao Communications
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Wintao Communications Co, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Wintao Communications.
Diversification Opportunities for Shenyang Huitian and Wintao Communications
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Wintao is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Wintao Communications go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Wintao Communications
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.89 times more return on investment than Wintao Communications. However, Shenyang Huitian Thermal is 1.12 times less risky than Wintao Communications. It trades about 0.18 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.16 per unit of risk. If you would invest 275.00 in Shenyang Huitian Thermal on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Shenyang Huitian Thermal or generate 39.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Wintao Communications Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Wintao Communications |
Shenyang Huitian and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Wintao Communications
The main advantage of trading using opposite Shenyang Huitian and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Zhangjiagang Freetrade Science | Shenyang Huitian vs. Citic Guoan Wine | Shenyang Huitian vs. YiDong Electronics Technology | Shenyang Huitian vs. Success Electronics |
| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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