Correlation Between Wuhan Yangtze and ACM Research
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and ACM Research Shanghai, you can compare the effects of market volatilities on Wuhan Yangtze and ACM Research 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 ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and ACM Research.
Diversification Opportunities for Wuhan Yangtze and ACM Research
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wuhan and ACM is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai 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 ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and ACM Research go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and ACM Research
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 2.53 times more return on investment than ACM Research. However, Wuhan Yangtze is 2.53 times more volatile than ACM Research Shanghai. It trades about -0.05 of its potential returns per unit of risk. ACM Research Shanghai is currently generating about -0.15 per unit of risk. If you would invest 2,598 in Wuhan Yangtze Communication on October 16, 2024 and sell it today you would lose (348.00) from holding Wuhan Yangtze Communication or give up 13.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. ACM Research Shanghai
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| ACM Research Shanghai |
Wuhan Yangtze and ACM Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and ACM Research
The main advantage of trading using opposite Wuhan Yangtze and ACM Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, ACM Research 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 ACM Research will offset losses from the drop in ACM Research's long position.| Wuhan Yangtze vs. Guosheng Financial Holding | Wuhan Yangtze vs. Jinlong Machinery Electronic | Wuhan Yangtze vs. Shenzhen Zhongzhuang Construction | Wuhan Yangtze vs. Masterwork Machinery |
| ACM Research vs. Unisplendour Corp | ACM Research vs. Tongyu Communication | ACM Research vs. Changchun BCHT Biotechnology | ACM Research vs. Wuhan Yangtze Communication |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |