Correlation Between Wuxi Lead and GreenTech Environmental
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By analyzing existing cross correlation between Wuxi Lead Auto and GreenTech Environmental Co, you can compare the effects of market volatilities on Wuxi Lead and GreenTech Environmental 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 Lead with a short position of GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Lead and GreenTech Environmental.
Diversification Opportunities for Wuxi Lead and GreenTech Environmental
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuxi and GreenTech is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Lead Auto and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental and Wuxi Lead 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 Lead Auto are associated (or correlated) with GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Wuxi Lead i.e., Wuxi Lead and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Wuxi Lead and GreenTech Environmental
Assuming the 90 days trading horizon Wuxi Lead Auto is expected to under-perform the GreenTech Environmental. In addition to that, Wuxi Lead is 1.03 times more volatile than GreenTech Environmental Co. It trades about -0.02 of its total potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.03 per unit of volatility. If you would invest 1,239 in GreenTech Environmental Co on September 12, 2024 and sell it today you would earn a total of 331.00 from holding GreenTech Environmental Co or generate 26.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Lead Auto vs. GreenTech Environmental Co
Performance |
| Timeline |
| Wuxi Lead Auto |
| GreenTech Environmental |
Wuxi Lead and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Lead and GreenTech Environmental
The main advantage of trading using opposite Wuxi Lead and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Lead position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Wuxi Lead vs. Beijing Jiaman Dress | Wuxi Lead vs. Oppein Home Group | Wuxi Lead vs. Chongqing Brewery Co | Wuxi Lead vs. Guangzhou Zhujiang Brewery |
| GreenTech Environmental vs. Gansu Jiu Steel | GreenTech Environmental vs. Shandong Mining Machinery | GreenTech Environmental vs. Aba Chemicals Corp | GreenTech Environmental vs. BlueFocus Communication Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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