Correlation Between Wintao Communications and Shenyang Huitian
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By analyzing existing cross correlation between Wintao Communications Co and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Wintao Communications and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Shenyang Huitian.
Diversification Opportunities for Wintao Communications and Shenyang Huitian
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wintao and Shenyang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Wintao Communications i.e., Wintao Communications and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Wintao Communications and Shenyang Huitian
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.16 times more return on investment than Shenyang Huitian. However, Wintao Communications is 1.16 times more volatile than Shenyang Huitian Thermal. It trades about 0.1 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.02 per unit of risk. If you would invest 2,410 in Wintao Communications Co on September 13, 2024 and sell it today you would earn a total of 127.00 from holding Wintao Communications Co or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Wintao Communications |
| Shenyang Huitian Thermal |
Wintao Communications and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Shenyang Huitian
The main advantage of trading using opposite Wintao Communications and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. Bank of China |
| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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