Correlation Between Integrated Electronic and Wuxi Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Integrated Electronic Systems and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Integrated Electronic and Wuxi Chemical 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 Integrated Electronic with a short position of Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Wuxi Chemical.
Diversification Opportunities for Integrated Electronic and Wuxi Chemical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integrated and Wuxi is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment and Integrated Electronic 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 Integrated Electronic Systems are associated (or correlated) with Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Integrated Electronic i.e., Integrated Electronic and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Integrated Electronic and Wuxi Chemical
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 1.23 times more return on investment than Wuxi Chemical. However, Integrated Electronic is 1.23 times more volatile than Wuxi Chemical Equipment. It trades about 0.0 of its potential returns per unit of risk. Wuxi Chemical Equipment is currently generating about 0.0 per unit of risk. If you would invest 839.00 in Integrated Electronic Systems on October 26, 2024 and sell it today you would lose (166.00) from holding Integrated Electronic Systems or give up 19.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Wuxi Chemical Equipment
Performance |
| Timeline |
| Integrated Electronic |
| Wuxi Chemical Equipment |
Integrated Electronic and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Wuxi Chemical
The main advantage of trading using opposite Integrated Electronic and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic position performs unexpectedly, Wuxi Chemical 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 Chemical will offset losses from the drop in Wuxi Chemical's long position.| Integrated Electronic vs. Beijing Kaiwen Education | Integrated Electronic vs. Heren Health Co | Integrated Electronic vs. Changjiang Publishing Media | Integrated Electronic vs. Meinian Onehealth Healthcare |
| Wuxi Chemical vs. Wuhan Yangtze Communication | Wuxi Chemical vs. Ping An Insurance | Wuxi Chemical vs. Eastern Air Logistics | Wuxi Chemical vs. China Mobile Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |