Correlation Between Imeik Technology and Wuxi Chemical
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By analyzing existing cross correlation between Imeik Technology Development and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Imeik Technology and Wuxi Chemical 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 Imeik Technology with a short position of Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imeik Technology and Wuxi Chemical.
Diversification Opportunities for Imeik Technology and Wuxi Chemical
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Imeik and Wuxi is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Imeik Technology Development and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment and Imeik Technology 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 Imeik Technology Development are associated (or correlated) with Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Imeik Technology i.e., Imeik Technology and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Imeik Technology and Wuxi Chemical
Assuming the 90 days trading horizon Imeik Technology is expected to generate 1.13 times less return on investment than Wuxi Chemical. In addition to that, Imeik Technology is 1.97 times more volatile than Wuxi Chemical Equipment. It trades about 0.06 of its total potential returns per unit of risk. Wuxi Chemical Equipment is currently generating about 0.14 per unit of volatility. If you would invest 2,571 in Wuxi Chemical Equipment on November 2, 2024 and sell it today you would earn a total of 965.00 from holding Wuxi Chemical Equipment or generate 37.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imeik Technology Development vs. Wuxi Chemical Equipment
Performance |
| Timeline |
| Imeik Technology Dev |
| Wuxi Chemical Equipment |
Imeik Technology and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imeik Technology and Wuxi Chemical
The main advantage of trading using opposite Imeik Technology and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imeik Technology position performs unexpectedly, Wuxi Chemical 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 Wuxi Chemical will offset losses from the drop in Wuxi Chemical's long position.| Imeik Technology vs. North Copper Shanxi | Imeik Technology vs. Hefei Metalforming Mach | Imeik Technology vs. Suzhou Xingye Material | Imeik Technology vs. Ningbo Tip Rubber |
| Wuxi Chemical vs. Road Environment Technology | Wuxi Chemical vs. MayAir Technology Co | Wuxi Chemical vs. Heilongjiang Publishing Media | Wuxi Chemical vs. Silkroad Visual 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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