Correlation Between Wintao Communications and Shaanxi Beiyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wintao Communications Co and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on Wintao Communications and Shaanxi Beiyuan 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 Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Shaanxi Beiyuan.
Diversification Opportunities for Wintao Communications and Shaanxi Beiyuan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wintao and Shaanxi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of Wintao Communications i.e., Wintao Communications and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between Wintao Communications and Shaanxi Beiyuan
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 2.09 times more return on investment than Shaanxi Beiyuan. However, Wintao Communications is 2.09 times more volatile than Shaanxi Beiyuan Chemical. It trades about 0.16 of its potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about 0.21 per unit of risk. If you would invest 1,866 in Wintao Communications Co on September 12, 2024 and sell it today you would earn a total of 696.00 from holding Wintao Communications Co or generate 37.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
| Wintao Communications |
| Shaanxi Beiyuan Chemical |
Wintao Communications and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Shaanxi Beiyuan
The main advantage of trading using opposite Wintao Communications and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Shaanxi Beiyuan 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 Shaanxi Beiyuan will offset losses from the drop in Shaanxi Beiyuan'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 |
| Shaanxi Beiyuan vs. HUAQIN TECHNOLOGY LTD | Shaanxi Beiyuan vs. Jinhe Biotechnology Co | Shaanxi Beiyuan vs. Shaanxi Energy Investment | Shaanxi Beiyuan vs. Zhejiang Construction Investment |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world |