Correlation Between WinMate Communication and Ma Kuang
Can any of the company-specific risk be diversified away by investing in both WinMate Communication and Ma Kuang 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 Ma Kuang 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 Ma Kuang Healthcare, you can compare the effects of market volatilities on WinMate Communication and Ma Kuang 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 Ma Kuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinMate Communication and Ma Kuang.
Diversification Opportunities for WinMate Communication and Ma Kuang
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WinMate and 4139 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding WinMate Communication INC and Ma Kuang Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ma Kuang Healthcare 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 Ma Kuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ma Kuang Healthcare has no effect on the direction of WinMate Communication i.e., WinMate Communication and Ma Kuang go up and down completely randomly.
Pair Corralation between WinMate Communication and Ma Kuang
Assuming the 90 days trading horizon WinMate Communication INC is expected to generate 1.67 times more return on investment than Ma Kuang. However, WinMate Communication is 1.67 times more volatile than Ma Kuang Healthcare. It trades about 0.06 of its potential returns per unit of risk. Ma Kuang Healthcare is currently generating about 0.0 per unit of risk. If you would invest 14,900 in WinMate Communication INC on September 12, 2024 and sell it today you would earn a total of 300.00 from holding WinMate Communication INC or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WinMate Communication INC vs. Ma Kuang Healthcare
Performance |
| Timeline |
| WinMate Communication INC |
| Ma Kuang Healthcare |
WinMate Communication and Ma Kuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinMate Communication and Ma Kuang
The main advantage of trading using opposite WinMate Communication and Ma Kuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinMate Communication position performs unexpectedly, Ma Kuang 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 Ma Kuang will offset losses from the drop in Ma Kuang'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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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