Correlation Between WinMate Communication and Goodway Machine
Can any of the company-specific risk be diversified away by investing in both WinMate Communication and Goodway Machine at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining WinMate Communication and Goodway Machine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinMate Communication INC and Goodway Machine Corp, you can compare the effects of market volatilities on WinMate Communication and Goodway Machine 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 WinMate Communication with a short position of Goodway Machine. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinMate Communication and Goodway Machine.
Diversification Opportunities for WinMate Communication and Goodway Machine
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WinMate and Goodway is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding WinMate Communication INC and Goodway Machine Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodway Machine Corp and WinMate Communication 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 WinMate Communication INC are associated (or correlated) with Goodway Machine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodway Machine Corp has no effect on the direction of WinMate Communication i.e., WinMate Communication and Goodway Machine go up and down completely randomly.
Pair Corralation between WinMate Communication and Goodway Machine
Assuming the 90 days trading horizon WinMate Communication INC is expected to generate 1.75 times more return on investment than Goodway Machine. However, WinMate Communication is 1.75 times more volatile than Goodway Machine Corp. It trades about 0.08 of its potential returns per unit of risk. Goodway Machine Corp is currently generating about 0.01 per unit of risk. If you would invest 8,300 in WinMate Communication INC on September 13, 2024 and sell it today you would earn a total of 6,900 from holding WinMate Communication INC or generate 83.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
WinMate Communication INC vs. Goodway Machine Corp
Performance |
| Timeline |
| WinMate Communication INC |
| Goodway Machine Corp |
WinMate Communication and Goodway Machine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinMate Communication and Goodway Machine
The main advantage of trading using opposite WinMate Communication and Goodway Machine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinMate Communication position performs unexpectedly, Goodway Machine 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 Goodway Machine will offset losses from the drop in Goodway Machine's long position.| WinMate Communication vs. ANJI Technology Co | WinMate Communication vs. Emerging Display Technologies | WinMate Communication vs. U Tech Media Corp | WinMate Communication vs. Ruentex Development Co |
| Goodway Machine vs. Cameo Communications | Goodway Machine vs. Trade Van Information Services | Goodway Machine vs. WinMate Communication INC | Goodway Machine vs. U Ming Marine Transport |
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 CEOs Directory module to screen CEOs from public companies around the world.
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