Correlation Between Wintao Communications and Shanghai Pudong
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By analyzing existing cross correlation between Wintao Communications Co and Shanghai Pudong Development, you can compare the effects of market volatilities on Wintao Communications and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Shanghai Pudong.
Diversification Opportunities for Wintao Communications and Shanghai Pudong
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wintao and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Wintao Communications i.e., Wintao Communications and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Wintao Communications and Shanghai Pudong
Assuming the 90 days trading horizon Wintao Communications is expected to generate 1.44 times less return on investment than Shanghai Pudong. In addition to that, Wintao Communications is 3.27 times more volatile than Shanghai Pudong Development. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.06 per unit of volatility. If you would invest 700.00 in Shanghai Pudong Development on September 3, 2024 and sell it today you would earn a total of 246.00 from holding Shanghai Pudong Development or generate 35.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Shanghai Pudong Development
Performance |
| Timeline |
| Wintao Communications |
| Shanghai Pudong Deve |
Wintao Communications and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Shanghai Pudong
The main advantage of trading using opposite Wintao Communications and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| Wintao Communications vs. Gansu Jiu Steel | Wintao Communications vs. Ming Yang Smart | Wintao Communications vs. Aba Chemicals Corp | Wintao Communications vs. Loctek Ergonomic Technology |
| Shanghai Pudong vs. Jilin Jlu Communication | Shanghai Pudong vs. Zhongtong Guomai Communication | Shanghai Pudong vs. Wintao Communications Co | Shanghai Pudong vs. Muyuan Foodstuff Co |
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.
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