Correlation Between Weihai Guangwei and Songz Automobile
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By analyzing existing cross correlation between Weihai Guangwei Composites and Songz Automobile Air, you can compare the effects of market volatilities on Weihai Guangwei and Songz Automobile 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 Weihai Guangwei with a short position of Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Guangwei and Songz Automobile.
Diversification Opportunities for Weihai Guangwei and Songz Automobile
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Weihai and Songz is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Guangwei Composites and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air and Weihai Guangwei 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 Weihai Guangwei Composites are associated (or correlated) with Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Weihai Guangwei i.e., Weihai Guangwei and Songz Automobile go up and down completely randomly.
Pair Corralation between Weihai Guangwei and Songz Automobile
Assuming the 90 days trading horizon Weihai Guangwei is expected to generate 22.67 times less return on investment than Songz Automobile. In addition to that, Weihai Guangwei is 1.06 times more volatile than Songz Automobile Air. It trades about 0.0 of its total potential returns per unit of risk. Songz Automobile Air is currently generating about 0.01 per unit of volatility. If you would invest 697.00 in Songz Automobile Air on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Songz Automobile Air or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Guangwei Composites vs. Songz Automobile Air
Performance |
| Timeline |
| Weihai Guangwei Comp |
| Songz Automobile Air |
Weihai Guangwei and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Guangwei and Songz Automobile
The main advantage of trading using opposite Weihai Guangwei and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Guangwei position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Weihai Guangwei vs. Dazhong Transportation Group | Weihai Guangwei vs. Kangxin New Materials | Weihai Guangwei vs. Orinko Advanced Plastics | Weihai Guangwei vs. Advanced Technology Materials |
| Songz Automobile vs. Lutian Machinery Co | Songz Automobile vs. PetroChina Co Ltd | Songz Automobile vs. Bank of China | Songz Automobile vs. Gansu Jiu Steel |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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