Correlation Between Wintao Communications and Jilin Chemical
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By analyzing existing cross correlation between Wintao Communications Co and Jilin Chemical Fibre, you can compare the effects of market volatilities on Wintao Communications and Jilin 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 Wintao Communications with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Jilin Chemical.
Diversification Opportunities for Wintao Communications and Jilin Chemical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wintao and Jilin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Wintao Communications 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 Wintao Communications Co are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Wintao Communications i.e., Wintao Communications and Jilin Chemical go up and down completely randomly.
Pair Corralation between Wintao Communications and Jilin Chemical
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.4 times more return on investment than Jilin Chemical. However, Wintao Communications is 1.4 times more volatile than Jilin Chemical Fibre. It trades about 0.0 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.02 per unit of risk. If you would invest 2,695 in Wintao Communications Co on October 15, 2024 and sell it today you would lose (684.00) from holding Wintao Communications Co or give up 25.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Wintao Communications |
| Jilin Chemical Fibre |
Wintao Communications and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Jilin Chemical
The main advantage of trading using opposite Wintao Communications and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Jilin 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Wintao Communications vs. Nuode Investment Co | Wintao Communications vs. BTG Hotels Group | Wintao Communications vs. Success Electronics | Wintao Communications vs. Henan Shuanghui Investment |
| Jilin Chemical vs. Dezhan HealthCare Co | Jilin Chemical vs. Healthcare Co | Jilin Chemical vs. Shanghai Rongtai Health | Jilin Chemical vs. Iat Automobile 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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