Correlation Between Wuxi Chemical and Success Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuxi Chemical Equipment and Success Electronics, you can compare the effects of market volatilities on Wuxi Chemical and Success Electronics 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 Wuxi Chemical with a short position of Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Chemical and Success Electronics.
Diversification Opportunities for Wuxi Chemical and Success Electronics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuxi and Success is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Chemical Equipment and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics and Wuxi Chemical 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 Wuxi Chemical Equipment are associated (or correlated) with Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Wuxi Chemical i.e., Wuxi Chemical and Success Electronics go up and down completely randomly.
Pair Corralation between Wuxi Chemical and Success Electronics
Assuming the 90 days trading horizon Wuxi Chemical Equipment is expected to under-perform the Success Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Wuxi Chemical Equipment is 1.61 times less risky than Success Electronics. The stock trades about -0.22 of its potential returns per unit of risk. The Success Electronics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 398.00 in Success Electronics on October 16, 2024 and sell it today you would lose (7.00) from holding Success Electronics or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Chemical Equipment vs. Success Electronics
Performance |
| Timeline |
| Wuxi Chemical Equipment |
| Success Electronics |
Wuxi Chemical and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Chemical and Success Electronics
The main advantage of trading using opposite Wuxi Chemical and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Chemical position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Wuxi Chemical vs. Biwin Storage Technology | Wuxi Chemical vs. PetroChina Co Ltd | Wuxi Chemical vs. Industrial and Commercial | Wuxi Chemical vs. China Construction Bank |
| Success Electronics vs. Guangdong Shenglu Telecommunication | Success Electronics vs. Wuhan Yangtze Communication | Success Electronics vs. Tibet Huayu Mining | Success Electronics vs. Guocheng Mining 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |