Correlation Between Wuhan Yangtze and Jiangsu Yueda
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Wuhan Yangtze and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Jiangsu Yueda.
Diversification Opportunities for Wuhan Yangtze and Jiangsu Yueda
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Jiangsu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Jiangsu Yueda
Assuming the 90 days trading horizon Wuhan Yangtze is expected to generate 1.13 times less return on investment than Jiangsu Yueda. In addition to that, Wuhan Yangtze is 1.47 times more volatile than Jiangsu Yueda Investment. It trades about 0.03 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.05 per unit of volatility. If you would invest 342.00 in Jiangsu Yueda Investment on November 3, 2024 and sell it today you would earn a total of 86.00 from holding Jiangsu Yueda Investment or generate 25.15% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Jiangsu Yueda Investment |
Wuhan Yangtze and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Jiangsu Yueda
The main advantage of trading using opposite Wuhan Yangtze and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Wuhan Yangtze vs. Lander Sports Development | Wuhan Yangtze vs. Hubeiyichang Transportation Group | Wuhan Yangtze vs. Hainan Haiqi Transportation | Wuhan Yangtze vs. Sichuan Fulin Transportation |
| Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Agricultural Bank of | Jiangsu Yueda vs. China Mobile Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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