Correlation Between Wuhan Yangtze and Shenzhen Silver
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Shenzhen Silver Basis, you can compare the effects of market volatilities on Wuhan Yangtze and Shenzhen Silver 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 Wuhan Yangtze with a short position of Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Shenzhen Silver.
Diversification Opportunities for Wuhan Yangtze and Shenzhen Silver
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wuhan and Shenzhen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Shenzhen Silver
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.19 times more return on investment than Shenzhen Silver. However, Wuhan Yangtze is 1.19 times more volatile than Shenzhen Silver Basis. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.05 per unit of risk. If you would invest 2,226 in Wuhan Yangtze Communication on November 3, 2024 and sell it today you would earn a total of 67.00 from holding Wuhan Yangtze Communication or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Shenzhen Silver Basis |
Wuhan Yangtze and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Shenzhen Silver
The main advantage of trading using opposite Wuhan Yangtze and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Wuhan Yangtze vs. Lander Sports Development | Wuhan Yangtze vs. Hubeiyichang Transportation Group | Wuhan Yangtze vs. Hainan Haiqi Transportation | Wuhan Yangtze vs. Sichuan Fulin Transportation |
| Shenzhen Silver vs. Chinese Universe Publishing | Shenzhen Silver vs. Jiangsu Phoenix Publishing | Shenzhen Silver vs. Shanghai Action Education | Shenzhen Silver vs. Xinhua Winshare Publishing |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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