Correlation Between Wintao Communications and Hubei Xingfa
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By analyzing existing cross correlation between Wintao Communications Co and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Wintao Communications and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Hubei Xingfa.
Diversification Opportunities for Wintao Communications and Hubei Xingfa
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wintao and Hubei is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Wintao Communications i.e., Wintao Communications and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Wintao Communications and Hubei Xingfa
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.14 times more return on investment than Hubei Xingfa. However, Wintao Communications is 1.14 times more volatile than Hubei Xingfa Chemicals. It trades about 0.01 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.08 per unit of risk. If you would invest 2,535 in Wintao Communications Co on September 14, 2024 and sell it today you would earn a total of 2.00 from holding Wintao Communications Co or generate 0.08% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Wintao Communications |
| Hubei Xingfa Chemicals |
Wintao Communications and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Hubei Xingfa
The main advantage of trading using opposite Wintao Communications and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa'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 |
| Hubei Xingfa vs. Hainan Mining Co | Hubei Xingfa vs. Wintao Communications Co | Hubei Xingfa vs. Xinjiang Communications Construction | Hubei Xingfa vs. Xinjiang Baodi Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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