Correlation Between Wintao Communications and Xinjiang Zhongtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wintao Communications Co and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Wintao Communications and Xinjiang Zhongtai 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 Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Xinjiang Zhongtai.
Diversification Opportunities for Wintao Communications and Xinjiang Zhongtai
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wintao and Xinjiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai 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 Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Wintao Communications i.e., Wintao Communications and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Wintao Communications and Xinjiang Zhongtai
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.69 times more return on investment than Xinjiang Zhongtai. However, Wintao Communications is 1.69 times more volatile than Xinjiang Zhongtai Chemical. It trades about -0.01 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about -0.04 per unit of risk. If you would invest 3,393 in Wintao Communications Co on September 12, 2024 and sell it today you would lose (831.00) from holding Wintao Communications Co or give up 24.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Wintao Communications Co vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Wintao Communications |
| Xinjiang Zhongtai |
Wintao Communications and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Xinjiang Zhongtai
The main advantage of trading using opposite Wintao Communications and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.The idea behind Wintao Communications Co and Xinjiang Zhongtai Chemical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Xinjiang Zhongtai vs. Sunny Loan Top | Xinjiang Zhongtai vs. Ye Chiu Metal | Xinjiang Zhongtai vs. Xinjiang Baodi Mining | Xinjiang Zhongtai vs. Zhejiang Kingland Pipeline |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |