Correlation Between Wuhan Yangtze and Wintao Communications
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Wintao Communications Co, you can compare the effects of market volatilities on Wuhan Yangtze and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Wintao Communications.
Diversification Opportunities for Wuhan Yangtze and Wintao Communications
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Wintao is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Wintao Communications go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Wintao Communications
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.11 times more return on investment than Wintao Communications. However, Wuhan Yangtze is 1.11 times more volatile than Wintao Communications Co. It trades about -0.04 of its potential returns per unit of risk. Wintao Communications Co is currently generating about -0.09 per unit of risk. If you would invest 2,391 in Wuhan Yangtze Communication on October 30, 2024 and sell it today you would lose (98.00) from holding Wuhan Yangtze Communication or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Wintao Communications Co
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Wintao Communications |
Wuhan Yangtze and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Wintao Communications
The main advantage of trading using opposite Wuhan Yangtze and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' 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 |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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