Correlation Between Wonders Information and China Fortune
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By analyzing existing cross correlation between Wonders Information and China Fortune Land, you can compare the effects of market volatilities on Wonders Information and China Fortune 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 China Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and China Fortune.
Diversification Opportunities for Wonders Information and China Fortune
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonders and China is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information and China Fortune Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fortune Land 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 China Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fortune Land has no effect on the direction of Wonders Information i.e., Wonders Information and China Fortune go up and down completely randomly.
Pair Corralation between Wonders Information and China Fortune
Assuming the 90 days trading horizon Wonders Information is expected to generate 2.02 times less return on investment than China Fortune. But when comparing it to its historical volatility, Wonders Information is 1.13 times less risky than China Fortune. It trades about 0.11 of its potential returns per unit of risk. China Fortune Land is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 104.00 in China Fortune Land on October 18, 2024 and sell it today you would earn a total of 143.00 from holding China Fortune Land or generate 137.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. China Fortune Land
Performance |
| Timeline |
| Wonders Information |
| China Fortune Land |
Wonders Information and China Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and China Fortune
The main advantage of trading using opposite Wonders Information and China Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information position performs unexpectedly, China Fortune 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 China Fortune will offset losses from the drop in China Fortune'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 |
| China Fortune vs. Inspur Software Co | China Fortune vs. Wonders Information | China Fortune vs. Emdoor Information Co | China Fortune vs. ButOne Information Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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