Correlation Between Weichai Heavy and China Sports
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By analyzing existing cross correlation between Weichai Heavy Machinery and China Sports Industry, you can compare the effects of market volatilities on Weichai Heavy and China Sports 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 Weichai Heavy with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and China Sports.
Diversification Opportunities for Weichai Heavy and China Sports
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weichai and China is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry and Weichai Heavy 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 Weichai Heavy Machinery are associated (or correlated) with China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Weichai Heavy i.e., Weichai Heavy and China Sports go up and down completely randomly.
Pair Corralation between Weichai Heavy and China Sports
If you would invest 995.00 in Weichai Heavy Machinery on October 31, 2024 and sell it today you would earn a total of 999.00 from holding Weichai Heavy Machinery or generate 100.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. China Sports Industry
Performance |
| Timeline |
| Weichai Heavy Machinery |
| China Sports Industry |
Weichai Heavy and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and China Sports
The main advantage of trading using opposite Weichai Heavy and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Weichai Heavy vs. Miracll Chemicals Co | Weichai Heavy vs. Zoje Resources Investment | Weichai Heavy vs. Beijing Mainstreets Investment | Weichai Heavy vs. China Eastern Airlines |
| China Sports vs. Hengli Petrochemical Co | China Sports vs. Panda Financial Holding | China Sports vs. GRG Banking Equipment | China Sports vs. Xiangtan Electrochemical Scientific |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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