Correlation Between Wenzhou Kangning and Volkswagen
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By analyzing existing cross correlation between Wenzhou Kangning Hospital and Volkswagen AG VZO, you can compare the effects of market volatilities on Wenzhou Kangning and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and Volkswagen.
Diversification Opportunities for Wenzhou Kangning and Volkswagen
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wenzhou and Volkswagen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and Volkswagen AG VZO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG VZO 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG VZO has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and Volkswagen go up and down completely randomly.
Pair Corralation between Wenzhou Kangning and Volkswagen
Assuming the 90 days trading horizon Wenzhou Kangning Hospital is expected to generate 1.98 times more return on investment than Volkswagen. However, Wenzhou Kangning is 1.98 times more volatile than Volkswagen AG VZO. It trades about 0.05 of its potential returns per unit of risk. Volkswagen AG VZO is currently generating about -0.02 per unit of risk. If you would invest 83.00 in Wenzhou Kangning Hospital on October 13, 2024 and sell it today you would earn a total of 55.00 from holding Wenzhou Kangning Hospital or generate 66.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wenzhou Kangning Hospital vs. Volkswagen AG VZO
Performance |
| Timeline |
| Wenzhou Kangning Hospital |
| Volkswagen AG VZO |
Wenzhou Kangning and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Kangning and Volkswagen
The main advantage of trading using opposite Wenzhou Kangning and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Kangning position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc |
| Volkswagen vs. Monster Beverage Corp | Volkswagen vs. Wenzhou Kangning Hospital | Volkswagen vs. China Resources Beer | Volkswagen vs. US Physical Therapy |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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