Correlation Between Winner Medical and Datang Telecom
Specify exactly 2 symbols:
By analyzing existing cross correlation between Winner Medical Co and Datang Telecom Technology, you can compare the effects of market volatilities on Winner Medical and Datang Telecom 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 Winner Medical with a short position of Datang Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Medical and Datang Telecom.
Diversification Opportunities for Winner Medical and Datang Telecom
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Winner and Datang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Winner Medical Co and Datang Telecom Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang Telecom Technology and Winner Medical 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 Winner Medical Co are associated (or correlated) with Datang Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang Telecom Technology has no effect on the direction of Winner Medical i.e., Winner Medical and Datang Telecom go up and down completely randomly.
Pair Corralation between Winner Medical and Datang Telecom
Assuming the 90 days trading horizon Winner Medical Co is expected to under-perform the Datang Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Winner Medical Co is 1.41 times less risky than Datang Telecom. The stock trades about 0.0 of its potential returns per unit of risk. The Datang Telecom Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Datang Telecom Technology on August 29, 2024 and sell it today you would earn a total of 356.00 from holding Datang Telecom Technology or generate 52.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winner Medical Co vs. Datang Telecom Technology
Performance |
| Timeline |
| Winner Medical |
| Datang Telecom Technology |
Winner Medical and Datang Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Medical and Datang Telecom
The main advantage of trading using opposite Winner Medical and Datang Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Medical position performs unexpectedly, Datang Telecom 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 Datang Telecom will offset losses from the drop in Datang Telecom's long position.| Winner Medical vs. Bank of China | Winner Medical vs. Kweichow Moutai Co | Winner Medical vs. PetroChina Co Ltd | Winner Medical vs. Bank of Communications |
| Datang Telecom vs. Shenzhen MYS Environmental | Datang Telecom vs. AVIC Fund Management | Datang Telecom vs. Shenzhen Bingchuan Network | Datang Telecom vs. Penghua Shenzhen Energy |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |