Correlation Between Wenzhou Kangning and WUXI BIOLOGICS
Can any of the company-specific risk be diversified away by investing in both Wenzhou Kangning and WUXI BIOLOGICS 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 Wenzhou Kangning and WUXI BIOLOGICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wenzhou Kangning Hospital and WUXI BIOLOGICS UNSPADR2, you can compare the effects of market volatilities on Wenzhou Kangning and WUXI BIOLOGICS 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 Wenzhou Kangning with a short position of WUXI BIOLOGICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and WUXI BIOLOGICS.
Diversification Opportunities for Wenzhou Kangning and WUXI BIOLOGICS
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wenzhou and WUXI is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and WUXI BIOLOGICS UNSPADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WUXI BIOLOGICS UNSPADR2 and Wenzhou Kangning 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 Wenzhou Kangning Hospital are associated (or correlated) with WUXI BIOLOGICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WUXI BIOLOGICS UNSPADR2 has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and WUXI BIOLOGICS go up and down completely randomly.
Pair Corralation between Wenzhou Kangning and WUXI BIOLOGICS
Assuming the 90 days trading horizon Wenzhou Kangning Hospital is expected to generate 0.65 times more return on investment than WUXI BIOLOGICS. However, Wenzhou Kangning Hospital is 1.55 times less risky than WUXI BIOLOGICS. It trades about 0.05 of its potential returns per unit of risk. WUXI BIOLOGICS UNSPADR2 is currently generating about -0.04 per unit of risk. If you would invest 83.00 in Wenzhou Kangning Hospital on October 16, 2024 and sell it today you would earn a total of 53.00 from holding Wenzhou Kangning Hospital or generate 63.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Wenzhou Kangning Hospital vs. WUXI BIOLOGICS UNSPADR2
Performance |
| Timeline |
| Wenzhou Kangning Hospital |
| WUXI BIOLOGICS UNSPADR2 |
Wenzhou Kangning and WUXI BIOLOGICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Kangning and WUXI BIOLOGICS
The main advantage of trading using opposite Wenzhou Kangning and WUXI BIOLOGICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Kangning position performs unexpectedly, WUXI BIOLOGICS 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 WUXI BIOLOGICS will offset losses from the drop in WUXI BIOLOGICS's long position.| Wenzhou Kangning vs. Vishay Intertechnology | Wenzhou Kangning vs. Pembina Pipeline Corp | Wenzhou Kangning vs. MACOM Technology Solutions | Wenzhou Kangning vs. PKSHA TECHNOLOGY INC |
| WUXI BIOLOGICS vs. YOOMA WELLNESS INC | WUXI BIOLOGICS vs. HEALTHSTREAM | WUXI BIOLOGICS vs. CARDINAL HEALTH | WUXI BIOLOGICS vs. Wenzhou Kangning Hospital |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |