Correlation Between Wuhan Yangtze and Zoy Home
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Zoy Home Furnishing, you can compare the effects of market volatilities on Wuhan Yangtze and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Zoy Home.
Diversification Opportunities for Wuhan Yangtze and Zoy Home
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Zoy is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Zoy Home go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Zoy Home
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 0.98 times more return on investment than Zoy Home. However, Wuhan Yangtze Communication is 1.02 times less risky than Zoy Home. It trades about 0.04 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about -0.03 per unit of risk. If you would invest 1,683 in Wuhan Yangtze Communication on October 14, 2024 and sell it today you would earn a total of 379.00 from holding Wuhan Yangtze Communication or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Zoy Home Furnishing
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Zoy Home Furnishing |
Wuhan Yangtze and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Zoy Home
The main advantage of trading using opposite Wuhan Yangtze and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Wuhan Yangtze vs. Chengdu Spaceon Electronics | Wuhan Yangtze vs. China Asset Management | Wuhan Yangtze vs. Ye Chiu Metal | Wuhan Yangtze vs. Huaxia Fund Management |
| Zoy Home vs. Telling Telecommunication Holding | Zoy Home vs. Eyebright Medical Technology | Zoy Home vs. Nanjing Putian Telecommunications | Zoy Home vs. 360 Security Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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