Correlation Between Wintao Communications and Shantou Wanshun
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By analyzing existing cross correlation between Wintao Communications Co and Shantou Wanshun Package, you can compare the effects of market volatilities on Wintao Communications and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Shantou Wanshun.
Diversification Opportunities for Wintao Communications and Shantou Wanshun
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintao and Shantou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Wintao Communications i.e., Wintao Communications and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Wintao Communications and Shantou Wanshun
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.31 times more return on investment than Shantou Wanshun. However, Wintao Communications is 1.31 times more volatile than Shantou Wanshun Package. It trades about 0.0 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about -0.16 per unit of risk. If you would invest 2,281 in Wintao Communications Co on October 26, 2024 and sell it today you would lose (18.00) from holding Wintao Communications Co or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wintao Communications Co vs. Shantou Wanshun Package
Performance |
| Timeline |
| Wintao Communications |
| Shantou Wanshun Package |
Wintao Communications and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Shantou Wanshun
The main advantage of trading using opposite Wintao Communications and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.| Wintao Communications vs. GigaDevice SemiconductorBeiji | Wintao Communications vs. Puya Semiconductor Shanghai | Wintao Communications vs. Anhui Transport Consulting | Wintao Communications vs. Ye Chiu Metal |
| Shantou Wanshun vs. Wintao Communications Co | Shantou Wanshun vs. China Satellite Communications | Shantou Wanshun vs. TianJin 712 Communication | Shantou Wanshun vs. China Publishing Media |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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