Correlation Between Wuxi Xuelang and Beijing Jiaman
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By analyzing existing cross correlation between Wuxi Xuelang Environmental and Beijing Jiaman Dress, you can compare the effects of market volatilities on Wuxi Xuelang and Beijing Jiaman 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 Wuxi Xuelang with a short position of Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Xuelang and Beijing Jiaman.
Diversification Opportunities for Wuxi Xuelang and Beijing Jiaman
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuxi and Beijing is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Xuelang Environmental and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress and Wuxi Xuelang 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 Wuxi Xuelang Environmental are associated (or correlated) with Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Wuxi Xuelang i.e., Wuxi Xuelang and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Wuxi Xuelang and Beijing Jiaman
Assuming the 90 days trading horizon Wuxi Xuelang Environmental is expected to generate 1.44 times more return on investment than Beijing Jiaman. However, Wuxi Xuelang is 1.44 times more volatile than Beijing Jiaman Dress. It trades about -0.01 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.01 per unit of risk. If you would invest 655.00 in Wuxi Xuelang Environmental on November 1, 2024 and sell it today you would lose (196.00) from holding Wuxi Xuelang Environmental or give up 29.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Xuelang Environmental vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Wuxi Xuelang Environ |
| Beijing Jiaman Dress |
Wuxi Xuelang and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Xuelang and Beijing Jiaman
The main advantage of trading using opposite Wuxi Xuelang and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Xuelang position performs unexpectedly, Beijing Jiaman 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 Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Wuxi Xuelang vs. China Longyuan Power | Wuxi Xuelang vs. PetroChina Co Ltd | Wuxi Xuelang vs. Guangxi Guiguan Electric | Wuxi Xuelang vs. Yantai North Andre |
| Beijing Jiaman vs. CITIC Metal Co | Beijing Jiaman vs. Shandong Hongchuang Aluminum | Beijing Jiaman vs. Shanghai Jinfeng Wine | Beijing Jiaman vs. Anhui Transport Consulting |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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