Correlation Between Cinda Securities and Wintao Communications
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By analyzing existing cross correlation between Cinda Securities Co and Wintao Communications Co, you can compare the effects of market volatilities on Cinda Securities and Wintao Communications 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 Cinda Securities with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Wintao Communications.
Diversification Opportunities for Cinda Securities and Wintao Communications
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cinda and Wintao is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Cinda Securities i.e., Cinda Securities and Wintao Communications go up and down completely randomly.
Pair Corralation between Cinda Securities and Wintao Communications
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Wintao Communications. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.29 times less risky than Wintao Communications. The stock trades about -0.16 of its potential returns per unit of risk. The Wintao Communications Co is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,335 in Wintao Communications Co on October 9, 2024 and sell it today you would lose (332.00) from holding Wintao Communications Co or give up 14.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Wintao Communications Co
Performance |
| Timeline |
| Cinda Securities |
| Wintao Communications |
Cinda Securities and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Wintao Communications
The main advantage of trading using opposite Cinda Securities and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Cinda Securities vs. Jinhe Biotechnology Co | Cinda Securities vs. HUAQIN TECHNOLOGY LTD | Cinda Securities vs. Keda Clean Energy | Cinda Securities vs. Semiconductor Manufacturing Intl |
| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. Kweichow Moutai Co | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. China Mobile Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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