Correlation Between Wuhan Yangtze and Eastroc Beverage
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Eastroc Beverage Group, you can compare the effects of market volatilities on Wuhan Yangtze and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Eastroc Beverage.
Diversification Opportunities for Wuhan Yangtze and Eastroc Beverage
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wuhan and Eastroc is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Eastroc Beverage
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 2.16 times more return on investment than Eastroc Beverage. However, Wuhan Yangtze is 2.16 times more volatile than Eastroc Beverage Group. It trades about 0.09 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.08 per unit of risk. If you would invest 1,840 in Wuhan Yangtze Communication on October 22, 2024 and sell it today you would earn a total of 394.00 from holding Wuhan Yangtze Communication or generate 21.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Eastroc Beverage Group
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Eastroc Beverage |
Wuhan Yangtze and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Eastroc Beverage
The main advantage of trading using opposite Wuhan Yangtze and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Wuhan Yangtze vs. Sichuan Yahua Industrial | Wuhan Yangtze vs. Quectel Wireless Solutions | Wuhan Yangtze vs. Bosera CMSK Industrial | Wuhan Yangtze vs. Chengtun Mining Group |
| Eastroc Beverage vs. Wuhan Yangtze Communication | Eastroc Beverage vs. Zhejiang Yinlun Machinery | Eastroc Beverage vs. Tongyu Communication | Eastroc Beverage vs. Hubei Yingtong Telecommunication |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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