Correlation Between Wuxi Chemical and Chenzhou Jingui
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By analyzing existing cross correlation between Wuxi Chemical Equipment and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Wuxi Chemical and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Chemical and Chenzhou Jingui.
Diversification Opportunities for Wuxi Chemical and Chenzhou Jingui
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuxi and Chenzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Chemical Equipment and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Wuxi Chemical i.e., Wuxi Chemical and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Wuxi Chemical and Chenzhou Jingui
Assuming the 90 days trading horizon Wuxi Chemical Equipment is expected to under-perform the Chenzhou Jingui. But the stock apears to be less risky and, when comparing its historical volatility, Wuxi Chemical Equipment is 1.03 times less risky than Chenzhou Jingui. The stock trades about 0.0 of its potential returns per unit of risk. The Chenzhou Jingui Silver is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 317.00 in Chenzhou Jingui Silver on October 27, 2024 and sell it today you would earn a total of 38.00 from holding Chenzhou Jingui Silver or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Chemical Equipment vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Wuxi Chemical Equipment |
| Chenzhou Jingui Silver |
Wuxi Chemical and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Chemical and Chenzhou Jingui
The main advantage of trading using opposite Wuxi Chemical and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Chemical position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Wuxi Chemical vs. Wuhan Yangtze Communication | Wuxi Chemical vs. Ping An Insurance | Wuxi Chemical vs. Eastern Air Logistics | Wuxi Chemical vs. China Mobile Limited |
| Chenzhou Jingui vs. Tongyu Communication | Chenzhou Jingui vs. Bank of Communications | Chenzhou Jingui vs. Hangzhou Pinming Software | Chenzhou Jingui vs. Runjian Communication 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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