Correlation Between Shandong Polymer and Wintao Communications
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Wintao Communications Co, you can compare the effects of market volatilities on Shandong Polymer 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 Shandong Polymer with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Wintao Communications.
Diversification Opportunities for Shandong Polymer and Wintao Communications
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Wintao is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Shandong Polymer 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 Shandong Polymer Biochemicals 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 Shandong Polymer i.e., Shandong Polymer and Wintao Communications go up and down completely randomly.
Pair Corralation between Shandong Polymer and Wintao Communications
Assuming the 90 days trading horizon Shandong Polymer is expected to generate 5.38 times less return on investment than Wintao Communications. But when comparing it to its historical volatility, Shandong Polymer Biochemicals is 1.37 times less risky than Wintao Communications. It trades about 0.0 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,658 in Wintao Communications Co on September 5, 2024 and sell it today you would lose (82.00) from holding Wintao Communications Co or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Wintao Communications Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| Wintao Communications |
Shandong Polymer and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Wintao Communications
The main advantage of trading using opposite Shandong Polymer and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer 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.| Shandong Polymer vs. Shengda Mining Co | Shandong Polymer vs. Chenzhou Jingui Silver | Shandong Polymer vs. Shanghai Broadband Technology | Shandong Polymer vs. Easyhome New Retail |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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