Correlation Between Wuhan Yangtze and Lepu Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and Lepu Medical Tech, you can compare the effects of market volatilities on Wuhan Yangtze and Lepu Medical 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 Lepu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Lepu Medical.
Diversification Opportunities for Wuhan Yangtze and Lepu Medical
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wuhan and Lepu is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Lepu Medical Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepu Medical Tech 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 Lepu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepu Medical Tech has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Lepu Medical go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Lepu Medical
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the Lepu Medical. In addition to that, Wuhan Yangtze is 1.98 times more volatile than Lepu Medical Tech. It trades about -0.26 of its total potential returns per unit of risk. Lepu Medical Tech is currently generating about -0.26 per unit of volatility. If you would invest 1,202 in Lepu Medical Tech on October 17, 2024 and sell it today you would lose (112.00) from holding Lepu Medical Tech or give up 9.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Lepu Medical Tech
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Lepu Medical Tech |
Wuhan Yangtze and Lepu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Lepu Medical
The main advantage of trading using opposite Wuhan Yangtze and Lepu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Lepu Medical 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 Lepu Medical will offset losses from the drop in Lepu Medical's long position.| Wuhan Yangtze vs. Shenwu Energy Saving | Wuhan Yangtze vs. China Everbright Bank | Wuhan Yangtze vs. Metro Investment Development | Wuhan Yangtze vs. Nuode Investment Co |
| Lepu Medical vs. Wuhan Yangtze Communication | Lepu Medical vs. Dosilicon Co | Lepu Medical vs. Jinsanjiang Silicon Material | Lepu Medical vs. Zhejiang JIULI Hi tech |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |