Correlation Between Wuhan Xianglong and Wanda Cinema
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Xianglong Power and Wanda Cinema Line, you can compare the effects of market volatilities on Wuhan Xianglong and Wanda Cinema 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 Xianglong with a short position of Wanda Cinema. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Wanda Cinema.
Diversification Opportunities for Wuhan Xianglong and Wanda Cinema
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Wanda is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power and Wanda Cinema Line in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanda Cinema Line and Wuhan Xianglong 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 Xianglong Power are associated (or correlated) with Wanda Cinema. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanda Cinema Line has no effect on the direction of Wuhan Xianglong i.e., Wuhan Xianglong and Wanda Cinema go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Wanda Cinema
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 1.31 times more return on investment than Wanda Cinema. However, Wuhan Xianglong is 1.31 times more volatile than Wanda Cinema Line. It trades about 0.04 of its potential returns per unit of risk. Wanda Cinema Line is currently generating about 0.0 per unit of risk. If you would invest 887.00 in Wuhan Xianglong Power on September 4, 2024 and sell it today you would earn a total of 395.00 from holding Wuhan Xianglong Power or generate 44.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Wanda Cinema Line
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Wanda Cinema Line |
Wuhan Xianglong and Wanda Cinema Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Wanda Cinema
The main advantage of trading using opposite Wuhan Xianglong and Wanda Cinema positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong position performs unexpectedly, Wanda Cinema 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 Wanda Cinema will offset losses from the drop in Wanda Cinema's long position.| Wuhan Xianglong vs. Hengdian Entertainment Co | Wuhan Xianglong vs. Qingdao Citymedia Co | Wuhan Xianglong vs. Shuhua Sports Co | Wuhan Xianglong vs. Heilongjiang Publishing Media |
| Wanda Cinema vs. Shanghai Shuixing Home | Wanda Cinema vs. Sinomach Automobile Co | Wanda Cinema vs. Easyhome New Retail | Wanda Cinema vs. Chongqing Changan Automobile |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |