Correlation Between Wuhan Yangtze and Kingsignal Technology
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Kingsignal Technology Co, you can compare the effects of market volatilities on Wuhan Yangtze and Kingsignal Technology 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 Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Kingsignal Technology.
Diversification Opportunities for Wuhan Yangtze and Kingsignal Technology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wuhan and Kingsignal is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal 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 Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Kingsignal Technology
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the Kingsignal Technology. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Yangtze Communication is 1.63 times less risky than Kingsignal Technology. The stock trades about -0.16 of its potential returns per unit of risk. The Kingsignal Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 914.00 in Kingsignal Technology Co on October 30, 2024 and sell it today you would earn a total of 26.00 from holding Kingsignal Technology Co or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Kingsignal Technology Co
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Kingsignal Technology |
Wuhan Yangtze and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Kingsignal Technology
The main advantage of trading using opposite Wuhan Yangtze and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| Wuhan Yangtze vs. Bus Online Co | Wuhan Yangtze vs. Holitech Technology Co | Wuhan Yangtze vs. Gome Telecom Equipment | Wuhan Yangtze vs. Cultural Investment Holdings |
| Kingsignal Technology vs. Ligao Foods CoLtd | Kingsignal Technology vs. Xinjiang Tianrun Dairy | Kingsignal Technology vs. Nanya New Material | Kingsignal Technology vs. V V Food |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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