Correlation Between China Securities and Wenzhou Yuanfei
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By analyzing existing cross correlation between China Securities 800 and Wenzhou Yuanfei Pet, you can compare the effects of market volatilities on China Securities and Wenzhou Yuanfei 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 China Securities with a short position of Wenzhou Yuanfei. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Wenzhou Yuanfei.
Diversification Opportunities for China Securities and Wenzhou Yuanfei
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Wenzhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Wenzhou Yuanfei Pet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Yuanfei Pet and China Securities 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 China Securities 800 are associated (or correlated) with Wenzhou Yuanfei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Yuanfei Pet has no effect on the direction of China Securities i.e., China Securities and Wenzhou Yuanfei go up and down completely randomly.
Pair Corralation between China Securities and Wenzhou Yuanfei
Assuming the 90 days trading horizon China Securities is expected to generate 1.65 times less return on investment than Wenzhou Yuanfei. But when comparing it to its historical volatility, China Securities 800 is 2.06 times less risky than Wenzhou Yuanfei. It trades about 0.01 of its potential returns per unit of risk. Wenzhou Yuanfei Pet is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Wenzhou Yuanfei Pet on September 14, 2024 and sell it today you would lose (14.00) from holding Wenzhou Yuanfei Pet or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Wenzhou Yuanfei Pet
Performance |
| Timeline |
China Securities and Wenzhou Yuanfei Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Wenzhou Yuanfei Pet
Pair trading matchups for Wenzhou Yuanfei
Pair Trading with China Securities and Wenzhou Yuanfei
The main advantage of trading using opposite China Securities and Wenzhou Yuanfei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Wenzhou Yuanfei 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 Wenzhou Yuanfei will offset losses from the drop in Wenzhou Yuanfei's long position.| China Securities vs. King Strong New Material | China Securities vs. Zhejiang Xiantong RubberPlastic | China Securities vs. Hangzhou Gaoxin Rubber | China Securities vs. Chongqing Sulian Plastic |
| Wenzhou Yuanfei vs. Nanjing Putian Telecommunications | Wenzhou Yuanfei vs. Tianjin Realty Development | Wenzhou Yuanfei vs. Kangyue Technology Co | Wenzhou Yuanfei vs. Shenzhen Hifuture Electric |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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