Correlation Between Wuliangye Yibin and Shantui Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuliangye Yibin Co and Shantui Construction Machinery, you can compare the effects of market volatilities on Wuliangye Yibin and Shantui Construction 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 Wuliangye Yibin with a short position of Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuliangye Yibin and Shantui Construction.
Diversification Opportunities for Wuliangye Yibin and Shantui Construction
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuliangye and Shantui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wuliangye Yibin Co and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction and Wuliangye Yibin 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 Wuliangye Yibin Co are associated (or correlated) with Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Wuliangye Yibin i.e., Wuliangye Yibin and Shantui Construction go up and down completely randomly.
Pair Corralation between Wuliangye Yibin and Shantui Construction
Assuming the 90 days trading horizon Wuliangye Yibin Co is expected to under-perform the Shantui Construction. But the stock apears to be less risky and, when comparing its historical volatility, Wuliangye Yibin Co is 1.46 times less risky than Shantui Construction. The stock trades about 0.0 of its potential returns per unit of risk. The Shantui Construction Machinery is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Shantui Construction Machinery on August 29, 2024 and sell it today you would earn a total of 555.00 from holding Shantui Construction Machinery or generate 120.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuliangye Yibin Co vs. Shantui Construction Machinery
Performance |
| Timeline |
| Wuliangye Yibin |
| Shantui Construction |
Wuliangye Yibin and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuliangye Yibin and Shantui Construction
The main advantage of trading using opposite Wuliangye Yibin and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuliangye Yibin position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Wuliangye Yibin vs. Bus Online Co | Wuliangye Yibin vs. Chengdu Xinzhu RoadBridge | Wuliangye Yibin vs. New Hope Dairy | Wuliangye Yibin vs. RoadMain T Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |