Correlation Between Guangdong Qunxing and Wintao Communications
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Wintao Communications Co, you can compare the effects of market volatilities on Guangdong Qunxing 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 Guangdong Qunxing with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Wintao Communications.
Diversification Opportunities for Guangdong Qunxing and Wintao Communications
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangdong and Wintao is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Guangdong Qunxing 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 Guangdong Qunxing Toys 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 Guangdong Qunxing i.e., Guangdong Qunxing and Wintao Communications go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Wintao Communications
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to under-perform the Wintao Communications. In addition to that, Guangdong Qunxing is 1.19 times more volatile than Wintao Communications Co. It trades about -0.24 of its total potential returns per unit of risk. Wintao Communications Co is currently generating about -0.09 per unit of volatility. If you would invest 2,346 in Wintao Communications Co on October 30, 2024 and sell it today you would lose (153.00) from holding Wintao Communications Co or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Wintao Communications Co
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Wintao Communications |
Guangdong Qunxing and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Wintao Communications
The main advantage of trading using opposite Guangdong Qunxing and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing 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.| Guangdong Qunxing vs. Ningbo Fangzheng Automobile | Guangdong Qunxing vs. Wintao Communications Co | Guangdong Qunxing vs. Runjian Communication Co | Guangdong Qunxing vs. Guangxi Wuzhou Communications |
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.
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