Correlation Between Gansu Huangtai and WuXi Xinje
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and WuXi Xinje Electric, you can compare the effects of market volatilities on Gansu Huangtai and WuXi Xinje 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 Gansu Huangtai with a short position of WuXi Xinje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and WuXi Xinje.
Diversification Opportunities for Gansu Huangtai and WuXi Xinje
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and WuXi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and WuXi Xinje Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi Xinje Electric and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with WuXi Xinje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi Xinje Electric has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and WuXi Xinje go up and down completely randomly.
Pair Corralation between Gansu Huangtai and WuXi Xinje
Assuming the 90 days trading horizon Gansu Huangtai is expected to generate 4.27 times less return on investment than WuXi Xinje. In addition to that, Gansu Huangtai is 1.48 times more volatile than WuXi Xinje Electric. It trades about 0.04 of its total potential returns per unit of risk. WuXi Xinje Electric is currently generating about 0.25 per unit of volatility. If you would invest 3,504 in WuXi Xinje Electric on September 27, 2024 and sell it today you would earn a total of 584.00 from holding WuXi Xinje Electric or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. WuXi Xinje Electric
Performance |
| Timeline |
| Gansu Huangtai Wine |
| WuXi Xinje Electric |
Gansu Huangtai and WuXi Xinje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and WuXi Xinje
The main advantage of trading using opposite Gansu Huangtai and WuXi Xinje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, WuXi Xinje 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 WuXi Xinje will offset losses from the drop in WuXi Xinje's long position.| Gansu Huangtai vs. Jiangsu Phoenix Publishing | Gansu Huangtai vs. Wangneng Environment Co | Gansu Huangtai vs. Dynagreen Environmental Protection | Gansu Huangtai vs. Chinese Universe Publishing |
| WuXi Xinje vs. Industrial and Commercial | WuXi Xinje vs. China Construction Bank | WuXi Xinje vs. Agricultural Bank of | WuXi Xinje 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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