Correlation Between Wuhan Yangtze and Lushang Property
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Lushang Property Co, you can compare the effects of market volatilities on Wuhan Yangtze and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Lushang Property.
Diversification Opportunities for Wuhan Yangtze and Lushang Property
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Lushang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Lushang Property go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Lushang Property
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 3.67 times more return on investment than Lushang Property. However, Wuhan Yangtze is 3.67 times more volatile than Lushang Property Co. It trades about 0.25 of its potential returns per unit of risk. Lushang Property Co is currently generating about 0.02 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Lushang Property Co
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Lushang Property |
Wuhan Yangtze and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Lushang Property
The main advantage of trading using opposite Wuhan Yangtze and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property'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 |
| Lushang Property vs. Wuhan Yangtze Communication | Lushang Property vs. Xinjiang Communications Construction | Lushang Property vs. Shenzhen Kexin Communication | Lushang Property vs. Guangdong Jingyi Metal |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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