Correlation Between Shaanxi Broadcast and Weihai Guangwei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shaanxi Broadcast TV and Weihai Guangwei Composites, you can compare the effects of market volatilities on Shaanxi Broadcast and Weihai Guangwei 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 Shaanxi Broadcast with a short position of Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Weihai Guangwei.
Diversification Opportunities for Shaanxi Broadcast and Weihai Guangwei
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Weihai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp and Shaanxi Broadcast 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 Shaanxi Broadcast TV are associated (or correlated) with Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Weihai Guangwei
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to under-perform the Weihai Guangwei. In addition to that, Shaanxi Broadcast is 1.2 times more volatile than Weihai Guangwei Composites. It trades about -0.07 of its total potential returns per unit of risk. Weihai Guangwei Composites is currently generating about 0.07 per unit of volatility. If you would invest 2,394 in Weihai Guangwei Composites on September 14, 2024 and sell it today you would earn a total of 1,123 from holding Weihai Guangwei Composites or generate 46.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Weihai Guangwei Composites
Performance |
| Timeline |
| Shaanxi Broadcast |
| Weihai Guangwei Comp |
Shaanxi Broadcast and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Weihai Guangwei
The main advantage of trading using opposite Shaanxi Broadcast and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei's long position.| Shaanxi Broadcast vs. Lutian Machinery Co | Shaanxi Broadcast vs. PetroChina Co Ltd | Shaanxi Broadcast vs. Bank of China | Shaanxi Broadcast vs. China Citic Bank |
| Weihai Guangwei vs. Nanjing Putian Telecommunications | Weihai Guangwei vs. Beijing Sanyuan Foods | Weihai Guangwei vs. Shenzhen Kexin Communication | Weihai Guangwei vs. Qingdao Foods Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |