Correlation Between Weihai Guangwei and Dazhong Transportation
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By analyzing existing cross correlation between Weihai Guangwei Composites and Dazhong Transportation Group, you can compare the effects of market volatilities on Weihai Guangwei and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Guangwei and Dazhong Transportation.
Diversification Opportunities for Weihai Guangwei and Dazhong Transportation
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Weihai and Dazhong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Guangwei Composites and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Weihai Guangwei i.e., Weihai Guangwei and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Weihai Guangwei and Dazhong Transportation
Assuming the 90 days trading horizon Weihai Guangwei Composites is expected to under-perform the Dazhong Transportation. In addition to that, Weihai Guangwei is 1.2 times more volatile than Dazhong Transportation Group. It trades about -0.13 of its total potential returns per unit of risk. Dazhong Transportation Group is currently generating about -0.08 per unit of volatility. If you would invest 27.00 in Dazhong Transportation Group on September 13, 2024 and sell it today you would lose (1.00) from holding Dazhong Transportation Group or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Guangwei Composites vs. Dazhong Transportation Group
Performance |
| Timeline |
| Weihai Guangwei Comp |
| Dazhong Transportation |
Weihai Guangwei and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Guangwei and Dazhong Transportation
The main advantage of trading using opposite Weihai Guangwei and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Guangwei position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Weihai Guangwei vs. Jiangsu Jinling Sports | Weihai Guangwei vs. Anhui Transport Consulting | Weihai Guangwei vs. Fujian Longzhou Transportation | Weihai Guangwei vs. Shaanxi Broadcast TV |
| Dazhong Transportation vs. Ming Yang Smart | Dazhong Transportation vs. 159681 | Dazhong Transportation vs. 159005 | Dazhong Transportation vs. Loctek Ergonomic 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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