Correlation Between Wuhan Xianglong and Zhuhai Comleader
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By analyzing existing cross correlation between Wuhan Xianglong Power and Zhuhai Comleader Information, you can compare the effects of market volatilities on Wuhan Xianglong and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Zhuhai Comleader.
Diversification Opportunities for Wuhan Xianglong and Zhuhai Comleader
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Zhuhai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of Wuhan Xianglong i.e., Wuhan Xianglong and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Zhuhai Comleader
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 0.92 times more return on investment than Zhuhai Comleader. However, Wuhan Xianglong Power is 1.09 times less risky than Zhuhai Comleader. It trades about 0.09 of its potential returns per unit of risk. Zhuhai Comleader Information is currently generating about 0.06 per unit of risk. If you would invest 798.00 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 430.00 from holding Wuhan Xianglong Power or generate 53.88% 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. Zhuhai Comleader Information
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Zhuhai Comleader Inf |
Wuhan Xianglong and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Zhuhai Comleader
The main advantage of trading using opposite Wuhan Xianglong and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader's long position.| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
| Zhuhai Comleader vs. Unisplendour Corp | Zhuhai Comleader vs. Guangzhou Zhujiang Brewery | Zhuhai Comleader vs. Chongqing Brewery Co | Zhuhai Comleader vs. Peoples Insurance of |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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