Correlation Between Wonders Information and Beijing Watertek
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By analyzing existing cross correlation between Wonders Information and Beijing Watertek Information, you can compare the effects of market volatilities on Wonders Information and Beijing Watertek 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 Wonders Information with a short position of Beijing Watertek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and Beijing Watertek.
Diversification Opportunities for Wonders Information and Beijing Watertek
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonders and Beijing is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information and Beijing Watertek Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Watertek Inf and Wonders Information 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 Wonders Information are associated (or correlated) with Beijing Watertek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Watertek Inf has no effect on the direction of Wonders Information i.e., Wonders Information and Beijing Watertek go up and down completely randomly.
Pair Corralation between Wonders Information and Beijing Watertek
Assuming the 90 days trading horizon Wonders Information is expected to under-perform the Beijing Watertek. But the stock apears to be less risky and, when comparing its historical volatility, Wonders Information is 1.23 times less risky than Beijing Watertek. The stock trades about -0.25 of its potential returns per unit of risk. The Beijing Watertek Information is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 389.00 in Beijing Watertek Information on October 18, 2024 and sell it today you would lose (63.00) from holding Beijing Watertek Information or give up 16.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. Beijing Watertek Information
Performance |
| Timeline |
| Wonders Information |
| Beijing Watertek Inf |
Wonders Information and Beijing Watertek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and Beijing Watertek
The main advantage of trading using opposite Wonders Information and Beijing Watertek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information position performs unexpectedly, Beijing Watertek 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 Beijing Watertek will offset losses from the drop in Beijing Watertek's long position.| Wonders Information vs. Zhongrun Resources Investment | Wonders Information vs. Kunwu Jiuding Investment | Wonders Information vs. Ningbo Ligong Online | Wonders Information vs. Vanfund Urban Investment |
| Beijing Watertek vs. Invengo Information Technology | Beijing Watertek vs. HaiXin Foods Co | Beijing Watertek vs. AVCON Information Tech | Beijing Watertek vs. Fujian Anjoy Foods |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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