Correlation Between Zhongfu Information and Wuxi Xuelang
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By analyzing existing cross correlation between Zhongfu Information and Wuxi Xuelang Environmental, you can compare the effects of market volatilities on Zhongfu Information and Wuxi Xuelang 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 Zhongfu Information with a short position of Wuxi Xuelang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and Wuxi Xuelang.
Diversification Opportunities for Zhongfu Information and Wuxi Xuelang
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongfu and Wuxi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu Information and Wuxi Xuelang Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Xuelang Environ and Zhongfu 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 Zhongfu Information are associated (or correlated) with Wuxi Xuelang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Xuelang Environ has no effect on the direction of Zhongfu Information i.e., Zhongfu Information and Wuxi Xuelang go up and down completely randomly.
Pair Corralation between Zhongfu Information and Wuxi Xuelang
Assuming the 90 days trading horizon Zhongfu Information is expected to generate 1.26 times more return on investment than Wuxi Xuelang. However, Zhongfu Information is 1.26 times more volatile than Wuxi Xuelang Environmental. It trades about -0.03 of its potential returns per unit of risk. Wuxi Xuelang Environmental is currently generating about -0.11 per unit of risk. If you would invest 1,712 in Zhongfu Information on October 28, 2024 and sell it today you would lose (50.00) from holding Zhongfu Information or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongfu Information vs. Wuxi Xuelang Environmental
Performance |
| Timeline |
| Zhongfu Information |
| Wuxi Xuelang Environ |
Zhongfu Information and Wuxi Xuelang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongfu Information and Wuxi Xuelang
The main advantage of trading using opposite Zhongfu Information and Wuxi Xuelang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu Information position performs unexpectedly, Wuxi Xuelang 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 Wuxi Xuelang will offset losses from the drop in Wuxi Xuelang's long position.| Zhongfu Information vs. China State Construction | Zhongfu Information vs. Poly Real Estate | Zhongfu Information vs. China Vanke Co | Zhongfu Information vs. China Merchants Shekou |
| Wuxi Xuelang vs. Ningxia Younglight Chemicals | Wuxi Xuelang vs. Hubei Xingfa Chemicals | Wuxi Xuelang vs. Chongqing Road Bridge | Wuxi Xuelang vs. Road Environment Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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