Correlation Between Weihai Guangwei and Der International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weihai Guangwei Composites and Der International Home, you can compare the effects of market volatilities on Weihai Guangwei and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Guangwei and Der International.
Diversification Opportunities for Weihai Guangwei and Der International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weihai and Der is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Guangwei Composites and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Weihai Guangwei i.e., Weihai Guangwei and Der International go up and down completely randomly.
Pair Corralation between Weihai Guangwei and Der International
Assuming the 90 days trading horizon Weihai Guangwei is expected to generate 55.11 times less return on investment than Der International. In addition to that, Weihai Guangwei is 1.1 times more volatile than Der International Home. It trades about 0.0 of its total potential returns per unit of risk. Der International Home is currently generating about 0.18 per unit of volatility. If you would invest 457.00 in Der International Home on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Der International Home or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Guangwei Composites vs. Der International Home
Performance |
| Timeline |
| Weihai Guangwei Comp |
| Der International Home |
Weihai Guangwei and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Guangwei and Der International
The main advantage of trading using opposite Weihai Guangwei and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Guangwei position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Weihai Guangwei vs. Xizi Clean Energy | Weihai Guangwei vs. Northern United Publishing | Weihai Guangwei vs. Keda Clean Energy | Weihai Guangwei vs. Beijing HuaYuanYiTong Thermal |
| Der International vs. Cangzhou Mingzhu Plastic | Der International vs. AVIC Fund Management | Der International vs. Super Dragon Engineering Plastics | Der International vs. Guangzhou Tinci Materials |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |