Correlation Between Industrial and Wangneng Environment
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By analyzing existing cross correlation between Industrial and Commercial and Wangneng Environment Co, you can compare the effects of market volatilities on Industrial and Wangneng Environment 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 Industrial with a short position of Wangneng Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Wangneng Environment.
Diversification Opportunities for Industrial and Wangneng Environment
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Wangneng is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Wangneng Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangneng Environment and Industrial 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 Industrial and Commercial are associated (or correlated) with Wangneng Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangneng Environment has no effect on the direction of Industrial i.e., Industrial and Wangneng Environment go up and down completely randomly.
Pair Corralation between Industrial and Wangneng Environment
Assuming the 90 days trading horizon Industrial is expected to generate 2.34 times less return on investment than Wangneng Environment. But when comparing it to its historical volatility, Industrial and Commercial is 1.44 times less risky than Wangneng Environment. It trades about 0.08 of its potential returns per unit of risk. Wangneng Environment Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,341 in Wangneng Environment Co on September 3, 2024 and sell it today you would earn a total of 225.00 from holding Wangneng Environment Co or generate 16.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Wangneng Environment Co
Performance |
| Timeline |
| Industrial and Commercial |
| Wangneng Environment |
Industrial and Wangneng Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Wangneng Environment
The main advantage of trading using opposite Industrial and Wangneng Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Wangneng Environment 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 Wangneng Environment will offset losses from the drop in Wangneng Environment's long position.| Industrial vs. Tengda Construction Group | Industrial vs. Hongrun Construction Group | Industrial vs. HUAQIN TECHNOLOGY LTD | Industrial vs. Sinomach General Machinery |
| Wangneng Environment vs. PetroChina Co Ltd | Wangneng Environment vs. China Mobile Limited | Wangneng Environment vs. Industrial and Commercial | Wangneng Environment vs. China Life Insurance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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