Correlation Between Weihai Honglin and Guilin Seamild
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By analyzing existing cross correlation between Weihai Honglin Electronic and Guilin Seamild Foods, you can compare the effects of market volatilities on Weihai Honglin and Guilin Seamild 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 Weihai Honglin with a short position of Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Guilin Seamild.
Diversification Opportunities for Weihai Honglin and Guilin Seamild
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Weihai and Guilin is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Guilin Seamild go up and down completely randomly.
Pair Corralation between Weihai Honglin and Guilin Seamild
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.75 times more return on investment than Guilin Seamild. However, Weihai Honglin is 1.75 times more volatile than Guilin Seamild Foods. It trades about 0.15 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about -0.12 per unit of risk. If you would invest 1,423 in Weihai Honglin Electronic on October 29, 2024 and sell it today you would earn a total of 184.00 from holding Weihai Honglin Electronic or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Guilin Seamild Foods
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Guilin Seamild Foods |
Weihai Honglin and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Guilin Seamild
The main advantage of trading using opposite Weihai Honglin and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Weihai Honglin vs. Fujian Boss Software | Weihai Honglin vs. Inspur Software Co | Weihai Honglin vs. HaiXin Foods Co | Weihai Honglin vs. Linewell Software Co |
| Guilin Seamild vs. Ningbo Kangqiang Electronics | Guilin Seamild vs. Zhonghang Electronic Measuring | Guilin Seamild vs. Weihai Honglin Electronic | Guilin Seamild vs. Ningbo Fujia Industrial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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