Correlation Between SSAW Hotels and Wangneng Environment
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By analyzing existing cross correlation between SSAW Hotels Resorts and Wangneng Environment Co, you can compare the effects of market volatilities on SSAW Hotels and Wangneng Environment 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 SSAW Hotels with a short position of Wangneng Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Wangneng Environment.
Diversification Opportunities for SSAW Hotels and Wangneng Environment
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSAW and Wangneng is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and Wangneng Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangneng Environment and SSAW Hotels 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 SSAW Hotels Resorts are associated (or correlated) with Wangneng Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangneng Environment has no effect on the direction of SSAW Hotels i.e., SSAW Hotels and Wangneng Environment go up and down completely randomly.
Pair Corralation between SSAW Hotels and Wangneng Environment
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to under-perform the Wangneng Environment. In addition to that, SSAW Hotels is 2.56 times more volatile than Wangneng Environment Co. It trades about -0.32 of its total potential returns per unit of risk. Wangneng Environment Co is currently generating about -0.34 per unit of volatility. If you would invest 1,582 in Wangneng Environment Co on October 11, 2024 and sell it today you would lose (147.00) from holding Wangneng Environment Co or give up 9.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. Wangneng Environment Co
Performance |
| Timeline |
| SSAW Hotels Resorts |
| Wangneng Environment |
SSAW Hotels and Wangneng Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and Wangneng Environment
The main advantage of trading using opposite SSAW Hotels and Wangneng Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels position performs unexpectedly, Wangneng Environment 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 Wangneng Environment will offset losses from the drop in Wangneng Environment's long position.| SSAW Hotels vs. Oppein Home Group | SSAW Hotels vs. Beijing Kingsoft Office | SSAW Hotels vs. Semiconductor Manufacturing Electronics | SSAW Hotels vs. YiDong Electronics Technology |
| Wangneng Environment vs. Central Plains Environment | Wangneng Environment vs. Fujian Nanwang Environment | Wangneng Environment vs. Postal Savings Bank | Wangneng Environment vs. China Asset Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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