Correlation Between Dongxing Sec and Wintao Communications
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By analyzing existing cross correlation between Dongxing Sec Co and Wintao Communications Co, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Wintao Communications.
Diversification Opportunities for Dongxing Sec and Wintao Communications
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dongxing and Wintao is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Wintao Communications go up and down completely randomly.
Pair Corralation between Dongxing Sec and Wintao Communications
Assuming the 90 days trading horizon Dongxing Sec Co is expected to under-perform the Wintao Communications. But the stock apears to be less risky and, when comparing its historical volatility, Dongxing Sec Co is 1.3 times less risky than Wintao Communications. The stock trades about -0.24 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 |
Dongxing Sec Co vs. Wintao Communications Co
Performance |
| Timeline |
| Dongxing Sec |
| Wintao Communications |
Dongxing Sec and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Wintao Communications
The main advantage of trading using opposite Dongxing Sec and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. JCHX Mining Management | Dongxing Sec vs. Pengxin International Mining | Dongxing Sec vs. Jinhui Mining Co | Dongxing Sec vs. Shengda Mining Co |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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