Correlation Between Weihai Guangwei and Shandong Homey
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weihai Guangwei Composites and Shandong Homey Aquatic, you can compare the effects of market volatilities on Weihai Guangwei and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Guangwei and Shandong Homey.
Diversification Opportunities for Weihai Guangwei and Shandong Homey
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weihai and Shandong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Guangwei Composites and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Weihai Guangwei i.e., Weihai Guangwei and Shandong Homey go up and down completely randomly.
Pair Corralation between Weihai Guangwei and Shandong Homey
Assuming the 90 days trading horizon Weihai Guangwei Composites is expected to under-perform the Shandong Homey. But the stock apears to be less risky and, when comparing its historical volatility, Weihai Guangwei Composites is 1.74 times less risky than Shandong Homey. The stock trades about -0.04 of its potential returns per unit of risk. The Shandong Homey Aquatic is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Shandong Homey Aquatic on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Shandong Homey Aquatic or generate 14.48% 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. Shandong Homey Aquatic
Performance |
| Timeline |
| Weihai Guangwei Comp |
| Shandong Homey Aquatic |
Weihai Guangwei and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Guangwei and Shandong Homey
The main advantage of trading using opposite Weihai Guangwei and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Guangwei position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Weihai Guangwei vs. Shandong Homey Aquatic | Weihai Guangwei vs. Xinhua Winshare Publishing | Weihai Guangwei vs. Luolai Home Textile | Weihai Guangwei vs. Changjiang Publishing Media |
| Shandong Homey vs. Henan Shuanghui Investment | Shandong Homey vs. Lander Sports Development | Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. Jointo Energy Investment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |