Correlation Between Wintao Communications and Qiming Information
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By analyzing existing cross correlation between Wintao Communications Co and Qiming Information Technology, you can compare the effects of market volatilities on Wintao Communications and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Qiming Information.
Diversification Opportunities for Wintao Communications and Qiming Information
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wintao and Qiming is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Wintao Communications i.e., Wintao Communications and Qiming Information go up and down completely randomly.
Pair Corralation between Wintao Communications and Qiming Information
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 0.85 times more return on investment than Qiming Information. However, Wintao Communications Co is 1.17 times less risky than Qiming Information. It trades about -0.07 of its potential returns per unit of risk. Qiming Information Technology is currently generating about -0.09 per unit of risk. If you would invest 2,438 in Wintao Communications Co on October 30, 2024 and sell it today you would lose (245.00) from holding Wintao Communications Co or give up 10.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Qiming Information Technology
Performance |
| Timeline |
| Wintao Communications |
| Qiming Information |
Wintao Communications and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Qiming Information
The main advantage of trading using opposite Wintao Communications and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.The idea behind Wintao Communications Co and Qiming Information Technology 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.
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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