Correlation Between Wha Yu and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both Wha Yu and Chinese Maritime 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 Wha Yu and Chinese Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wha Yu Industrial and Chinese Maritime Transport, you can compare the effects of market volatilities on Wha Yu and Chinese Maritime 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 Wha Yu with a short position of Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wha Yu and Chinese Maritime.
Diversification Opportunities for Wha Yu and Chinese Maritime
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wha and Chinese is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Wha Yu Industrial and Chinese Maritime Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Maritime Tra and Wha Yu 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 Wha Yu Industrial are associated (or correlated) with Chinese Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Maritime Tra has no effect on the direction of Wha Yu i.e., Wha Yu and Chinese Maritime go up and down completely randomly.
Pair Corralation between Wha Yu and Chinese Maritime
Assuming the 90 days trading horizon Wha Yu Industrial is expected to generate 1.87 times more return on investment than Chinese Maritime. However, Wha Yu is 1.87 times more volatile than Chinese Maritime Transport. It trades about 0.22 of its potential returns per unit of risk. Chinese Maritime Transport is currently generating about 0.05 per unit of risk. If you would invest 1,660 in Wha Yu Industrial on September 1, 2024 and sell it today you would earn a total of 270.00 from holding Wha Yu Industrial or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wha Yu Industrial vs. Chinese Maritime Transport
Performance |
| Timeline |
| Wha Yu Industrial |
| Chinese Maritime Tra |
Wha Yu and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wha Yu and Chinese Maritime
The main advantage of trading using opposite Wha Yu and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wha Yu position performs unexpectedly, Chinese Maritime 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 Chinese Maritime will offset losses from the drop in Chinese Maritime's long position.| Wha Yu vs. Gemtek Technology Co | Wha Yu vs. Arcadyan Technology Corp | Wha Yu vs. Zinwell | Wha Yu vs. Silitech Technology Corp |
| Chinese Maritime vs. U Ming Marine Transport | Chinese Maritime vs. Sincere Navigation Corp | Chinese Maritime vs. Taiwan Navigation Co | Chinese Maritime vs. Huaku Development Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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