Correlation Between Masterwork Machinery and Wuhan Yangtze
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By analyzing existing cross correlation between Masterwork Machinery and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Masterwork Machinery and Wuhan Yangtze 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 Masterwork Machinery with a short position of Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and Wuhan Yangtze.
Diversification Opportunities for Masterwork Machinery and Wuhan Yangtze
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Masterwork and Wuhan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun and Masterwork Machinery 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 Masterwork Machinery are associated (or correlated) with Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Masterwork Machinery i.e., Masterwork Machinery and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Masterwork Machinery and Wuhan Yangtze
Assuming the 90 days trading horizon Masterwork Machinery is expected to generate 0.95 times more return on investment than Wuhan Yangtze. However, Masterwork Machinery is 1.05 times less risky than Wuhan Yangtze. It trades about 0.07 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.07 per unit of risk. If you would invest 419.00 in Masterwork Machinery on October 30, 2024 and sell it today you would earn a total of 141.00 from holding Masterwork Machinery or generate 33.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterwork Machinery vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Masterwork Machinery |
| Wuhan Yangtze Commun |
Masterwork Machinery and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and Wuhan Yangtze
The main advantage of trading using opposite Masterwork Machinery and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Masterwork Machinery vs. BTG Hotels Group | Masterwork Machinery vs. Nanjing Putian Telecommunications | Masterwork Machinery vs. Guangdong Qunxing Toys | Masterwork Machinery vs. Citic Guoan Wine |
| Wuhan Yangtze vs. Bus Online Co | Wuhan Yangtze vs. Holitech Technology Co | Wuhan Yangtze vs. Gome Telecom Equipment | Wuhan Yangtze vs. Cultural Investment Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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