Correlation Between Wuhan Yangtze and Northking Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and Northking Information Technology, you can compare the effects of market volatilities on Wuhan Yangtze and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Northking Information.
Diversification Opportunities for Wuhan Yangtze and Northking Information
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Northking is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Northking Information go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Northking Information
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.38 times more return on investment than Northking Information. However, Wuhan Yangtze is 1.38 times more volatile than Northking Information Technology. It trades about 0.26 of its potential returns per unit of risk. Northking Information Technology is currently generating about -0.02 per unit of risk. If you would invest 1,798 in Wuhan Yangtze Communication on September 13, 2024 and sell it today you would earn a total of 1,173 from holding Wuhan Yangtze Communication or generate 65.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Northking Information Technolo
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Northking Information |
Wuhan Yangtze and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Northking Information
The main advantage of trading using opposite Wuhan Yangtze and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Wuhan Yangtze vs. Industrial and Commercial | Wuhan Yangtze vs. China Construction Bank | Wuhan Yangtze vs. Bank of China | Wuhan Yangtze vs. Agricultural Bank of |
| Northking Information vs. China Petroleum Chemical | Northking Information vs. PetroChina Co Ltd | Northking Information vs. China State Construction | Northking Information vs. China Railway Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |