Correlation Between Wuhan Xianglong and Beijing Quanshi
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By analyzing existing cross correlation between Wuhan Xianglong Power and Beijing Quanshi World, you can compare the effects of market volatilities on Wuhan Xianglong and Beijing Quanshi 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 Beijing Quanshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Beijing Quanshi.
Diversification Opportunities for Wuhan Xianglong and Beijing Quanshi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power and Beijing Quanshi World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Quanshi World 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 Beijing Quanshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Quanshi World has no effect on the direction of Wuhan Xianglong i.e., Wuhan Xianglong and Beijing Quanshi go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Beijing Quanshi
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 0.89 times more return on investment than Beijing Quanshi. However, Wuhan Xianglong Power is 1.12 times less risky than Beijing Quanshi. It trades about 0.03 of its potential returns per unit of risk. Beijing Quanshi World is currently generating about 0.01 per unit of risk. If you would invest 999.00 in Wuhan Xianglong Power on September 12, 2024 and sell it today you would earn a total of 171.00 from holding Wuhan Xianglong Power or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Beijing Quanshi World
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Beijing Quanshi World |
Wuhan Xianglong and Beijing Quanshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Beijing Quanshi
The main advantage of trading using opposite Wuhan Xianglong and Beijing Quanshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong position performs unexpectedly, Beijing Quanshi 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 Beijing Quanshi will offset losses from the drop in Beijing Quanshi's long position.| Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Gem Year Industrial Co | Wuhan Xianglong vs. Industrial Bank Co | Wuhan Xianglong vs. China Nonferrous Metal |
| Beijing Quanshi vs. Maccura Biotechnology Co | Beijing Quanshi vs. Hunan Investment Group | Beijing Quanshi vs. Zoje Resources Investment | Beijing Quanshi vs. Shenzhen Centralcon Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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