Correlation Between Wenzhou Kangning and WT OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Wenzhou Kangning and WT OFFSHORE 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 WT OFFSHORE 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 WT OFFSHORE, you can compare the effects of market volatilities on Wenzhou Kangning and WT OFFSHORE 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and WT OFFSHORE.
Diversification Opportunities for Wenzhou Kangning and WT OFFSHORE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wenzhou and UWV is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and WT OFFSHORE go up and down completely randomly.
Pair Corralation between Wenzhou Kangning and WT OFFSHORE
Assuming the 90 days trading horizon Wenzhou Kangning Hospital is expected to under-perform the WT OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, Wenzhou Kangning Hospital is 3.47 times less risky than WT OFFSHORE. The stock trades about -0.24 of its potential returns per unit of risk. The WT OFFSHORE is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 171.00 in WT OFFSHORE on October 11, 2024 and sell it today you would lose (5.00) from holding WT OFFSHORE or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wenzhou Kangning Hospital vs. WT OFFSHORE
Performance |
| Timeline |
| Wenzhou Kangning Hospital |
| WT OFFSHORE |
Wenzhou Kangning and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Kangning and WT OFFSHORE
The main advantage of trading using opposite Wenzhou Kangning and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Kangning position performs unexpectedly, WT OFFSHORE 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| Wenzhou Kangning vs. WT OFFSHORE | Wenzhou Kangning vs. Richardson Electronics | Wenzhou Kangning vs. STORE ELECTRONIC | Wenzhou Kangning vs. Eidesvik Offshore ASA |
| WT OFFSHORE vs. Calibre Mining Corp | WT OFFSHORE vs. PROSIEBENSAT1 MEDIADR4 | WT OFFSHORE vs. Tencent Music Entertainment | WT OFFSHORE vs. REMEDY ENTERTAINMENT OYJ |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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