Correlation Between Weihai Honglin and TianJin 712
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weihai Honglin Electronic and TianJin 712 Communication, you can compare the effects of market volatilities on Weihai Honglin and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and TianJin 712.
Diversification Opportunities for Weihai Honglin and TianJin 712
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weihai and TianJin is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and TianJin 712 go up and down completely randomly.
Pair Corralation between Weihai Honglin and TianJin 712
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.06 times more return on investment than TianJin 712. However, Weihai Honglin is 1.06 times more volatile than TianJin 712 Communication. It trades about -0.01 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about -0.04 per unit of risk. If you would invest 2,342 in Weihai Honglin Electronic on October 26, 2024 and sell it today you would lose (580.00) from holding Weihai Honglin Electronic or give up 24.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.98% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. TianJin 712 Communication
Performance |
| Timeline |
| Weihai Honglin Electronic |
| TianJin 712 Communication |
Weihai Honglin and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and TianJin 712
The main advantage of trading using opposite Weihai Honglin and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712's long position.| Weihai Honglin vs. Anhui Huilong Agricultural | Weihai Honglin vs. Qijing Machinery | Weihai Honglin vs. Medprin Regenerative Medical | Weihai Honglin vs. Guangdong Transtek Medical |
| TianJin 712 vs. Bus Online Co | TianJin 712 vs. Holitech Technology Co | TianJin 712 vs. Gome Telecom Equipment | TianJin 712 vs. Cultural Investment Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Positions Ratings 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 | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |