Correlation Between Wintao Communications and Tibet Huayu
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By analyzing existing cross correlation between Wintao Communications Co and Tibet Huayu Mining, you can compare the effects of market volatilities on Wintao Communications and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Tibet Huayu.
Diversification Opportunities for Wintao Communications and Tibet Huayu
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wintao and Tibet is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Wintao Communications i.e., Wintao Communications and Tibet Huayu go up and down completely randomly.
Pair Corralation between Wintao Communications and Tibet Huayu
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.92 times more return on investment than Tibet Huayu. However, Wintao Communications is 1.92 times more volatile than Tibet Huayu Mining. It trades about -0.32 of its potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.67 per unit of risk. If you would invest 2,525 in Wintao Communications Co on October 8, 2024 and sell it today you would lose (488.00) from holding Wintao Communications Co or give up 19.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Tibet Huayu Mining
Performance |
| Timeline |
| Wintao Communications |
| Tibet Huayu Mining |
Wintao Communications and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Tibet Huayu
The main advantage of trading using opposite Wintao Communications and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Wintao Communications vs. China Life Insurance | Wintao Communications vs. Cinda Securities Co | Wintao Communications vs. Piotech Inc A | Wintao Communications vs. Dongxing Sec 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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