Correlation Between Wuhan Yangtze and INKON Life
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By analyzing existing cross correlation between Wuhan Yangtze Communication and INKON Life Technology, you can compare the effects of market volatilities on Wuhan Yangtze and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and INKON Life.
Diversification Opportunities for Wuhan Yangtze and INKON Life
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and INKON is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and INKON Life go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and INKON Life
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 3.0 times more return on investment than INKON Life. However, Wuhan Yangtze is 3.0 times more volatile than INKON Life Technology. It trades about 0.25 of its potential returns per unit of risk. INKON Life Technology is currently generating about -0.17 per unit of risk. If you would invest 2,226 in Wuhan Yangtze Communication on September 13, 2024 and sell it today you would earn a total of 745.00 from holding Wuhan Yangtze Communication or generate 33.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. INKON Life Technology
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| INKON Life Technology |
Wuhan Yangtze and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and INKON Life
The main advantage of trading using opposite Wuhan Yangtze and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life'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 |
| INKON Life vs. Industrial and Commercial | INKON Life vs. China Construction Bank | INKON Life vs. Agricultural Bank of | INKON Life vs. Bank of China |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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