Correlation Between Weichai Heavy and China State
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weichai Heavy Machinery and China State Construction, you can compare the effects of market volatilities on Weichai Heavy and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and China State.
Diversification Opportunities for Weichai Heavy and China State
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weichai and China is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Weichai Heavy i.e., Weichai Heavy and China State go up and down completely randomly.
Pair Corralation between Weichai Heavy and China State
Assuming the 90 days trading horizon Weichai Heavy Machinery is expected to generate 1.67 times more return on investment than China State. However, Weichai Heavy is 1.67 times more volatile than China State Construction. It trades about 0.06 of its potential returns per unit of risk. China State Construction is currently generating about 0.01 per unit of risk. If you would invest 973.00 in Weichai Heavy Machinery on October 16, 2024 and sell it today you would earn a total of 766.00 from holding Weichai Heavy Machinery or generate 78.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. China State Construction
Performance |
| Timeline |
| Weichai Heavy Machinery |
| China State Construction |
Weichai Heavy and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and China State
The main advantage of trading using opposite Weichai Heavy and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| Weichai Heavy vs. Tibet Huayu Mining | Weichai Heavy vs. Qiaoyin Environmental Tech | Weichai Heavy vs. GreenTech Environmental Co | Weichai Heavy vs. Zhongshan Public Utilities |
| China State vs. Thunder Software Technology | China State vs. Weichai Heavy Machinery | China State vs. Sinomach General Machinery | China State vs. Nanxing Furniture Machinery |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |