Correlation Between Western Metal and Wintao Communications
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By analyzing existing cross correlation between Western Metal Materials and Wintao Communications Co, you can compare the effects of market volatilities on Western Metal and Wintao Communications 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 Western Metal with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Wintao Communications.
Diversification Opportunities for Western Metal and Wintao Communications
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Wintao is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Western Metal 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 Western Metal Materials are associated (or correlated) with Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Western Metal i.e., Western Metal and Wintao Communications go up and down completely randomly.
Pair Corralation between Western Metal and Wintao Communications
Assuming the 90 days trading horizon Western Metal is expected to generate 1.41 times less return on investment than Wintao Communications. In addition to that, Western Metal is 1.27 times more volatile than Wintao Communications Co. It trades about 0.12 of its total potential returns per unit of risk. Wintao Communications Co is currently generating about 0.21 per unit of volatility. If you would invest 2,003 in Wintao Communications Co on November 5, 2024 and sell it today you would earn a total of 190.00 from holding Wintao Communications Co or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Wintao Communications Co
Performance |
| Timeline |
| Western Metal Materials |
| Wintao Communications |
Western Metal and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Wintao Communications
The main advantage of trading using opposite Western Metal and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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