Correlation Between Wanhua Chemical and Beijing Lier
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wanhua Chemical Group and Beijing Lier High, you can compare the effects of market volatilities on Wanhua Chemical and Beijing Lier 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 Wanhua Chemical with a short position of Beijing Lier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wanhua Chemical and Beijing Lier.
Diversification Opportunities for Wanhua Chemical and Beijing Lier
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wanhua and Beijing is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Wanhua Chemical Group and Beijing Lier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lier High and Wanhua Chemical 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 Wanhua Chemical Group are associated (or correlated) with Beijing Lier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lier High has no effect on the direction of Wanhua Chemical i.e., Wanhua Chemical and Beijing Lier go up and down completely randomly.
Pair Corralation between Wanhua Chemical and Beijing Lier
Assuming the 90 days trading horizon Wanhua Chemical Group is expected to under-perform the Beijing Lier. But the stock apears to be less risky and, when comparing its historical volatility, Wanhua Chemical Group is 1.54 times less risky than Beijing Lier. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing Lier High is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Beijing Lier High on November 2, 2024 and sell it today you would earn a total of 146.00 from holding Beijing Lier High or generate 45.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wanhua Chemical Group vs. Beijing Lier High
Performance |
| Timeline |
| Wanhua Chemical Group |
| Beijing Lier High |
Wanhua Chemical and Beijing Lier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wanhua Chemical and Beijing Lier
The main advantage of trading using opposite Wanhua Chemical and Beijing Lier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wanhua Chemical position performs unexpectedly, Beijing Lier 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 Beijing Lier will offset losses from the drop in Beijing Lier's long position.| Wanhua Chemical vs. Sichuan Fulin Transportation | Wanhua Chemical vs. Hubeiyichang Transportation Group | Wanhua Chemical vs. Shenzhen Urban Transport | Wanhua Chemical vs. Giantec Semiconductor Corp |
| Beijing Lier vs. Shantui Construction Machinery | Beijing Lier vs. Hongrun Construction Group | Beijing Lier vs. Guangzhou KDT Machinery | Beijing Lier vs. Agricultural Bank of |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |