Correlation Between Chengdu B and Wasu Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu B ray Media and Wasu Media Holding, you can compare the effects of market volatilities on Chengdu B and Wasu Media 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 Chengdu B with a short position of Wasu Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Wasu Media.
Diversification Opportunities for Chengdu B and Wasu Media
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Wasu is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Wasu Media Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasu Media Holding and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with Wasu Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasu Media Holding has no effect on the direction of Chengdu B i.e., Chengdu B and Wasu Media go up and down completely randomly.
Pair Corralation between Chengdu B and Wasu Media
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Wasu Media. In addition to that, Chengdu B is 1.7 times more volatile than Wasu Media Holding. It trades about -0.19 of its total potential returns per unit of risk. Wasu Media Holding is currently generating about -0.18 per unit of volatility. If you would invest 750.00 in Wasu Media Holding on October 23, 2024 and sell it today you would lose (49.00) from holding Wasu Media Holding or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Wasu Media Holding
Performance |
| Timeline |
| Chengdu B ray |
| Wasu Media Holding |
Chengdu B and Wasu Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Wasu Media
The main advantage of trading using opposite Chengdu B and Wasu Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Wasu Media 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 Wasu Media will offset losses from the drop in Wasu Media's long position.| Chengdu B vs. Cambricon Technologies Corp | Chengdu B vs. SGSG Sciencetechnology Co | Chengdu B vs. Loongson Technology Corp | Chengdu B vs. Zhonghang Electronic Measuring |
| Wasu Media vs. Agricultural Bank of | Wasu Media vs. Industrial and Commercial | Wasu Media vs. Bank of China | Wasu Media vs. China Construction Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |