Correlation Between Wonders Information and Chongqing Brewery
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By analyzing existing cross correlation between Wonders Information and Chongqing Brewery Co, you can compare the effects of market volatilities on Wonders Information and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and Chongqing Brewery.
Diversification Opportunities for Wonders Information and Chongqing Brewery
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonders and Chongqing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Wonders Information i.e., Wonders Information and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Wonders Information and Chongqing Brewery
Assuming the 90 days trading horizon Wonders Information is expected to generate 2.12 times more return on investment than Chongqing Brewery. However, Wonders Information is 2.12 times more volatile than Chongqing Brewery Co. It trades about -0.2 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.51 per unit of risk. If you would invest 828.00 in Wonders Information on October 29, 2024 and sell it today you would lose (103.00) from holding Wonders Information or give up 12.44% 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. Chongqing Brewery Co
Performance |
| Timeline |
| Wonders Information |
| Chongqing Brewery |
Wonders Information and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and Chongqing Brewery
The main advantage of trading using opposite Wonders Information and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Wonders Information vs. Namchow Food Group | Wonders Information vs. Qingdao Foods Co | Wonders Information vs. China Aluminum International | Wonders Information vs. Tongling Nonferrous Metals |
| Chongqing Brewery vs. Dongfeng Automobile Co | Chongqing Brewery vs. BrightGene Bio Medical | Chongqing Brewery vs. Nanjing Putian Telecommunications | Chongqing Brewery vs. Winner Medical Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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