Correlation Between Industrial and Wenzhou Hongfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Industrial and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Wenzhou Hongfeng.
Diversification Opportunities for Industrial and Wenzhou Hongfeng
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Wenzhou is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Industrial i.e., Industrial and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Industrial and Wenzhou Hongfeng
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.39 times more return on investment than Wenzhou Hongfeng. However, Industrial and Commercial is 2.57 times less risky than Wenzhou Hongfeng. It trades about 0.07 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about -0.12 per unit of risk. If you would invest 649.00 in Industrial and Commercial on October 20, 2024 and sell it today you would earn a total of 12.00 from holding Industrial and Commercial or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Industrial and Commercial |
| Wenzhou Hongfeng Ele |
Industrial and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Wenzhou Hongfeng
The main advantage of trading using opposite Industrial and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| Industrial vs. Shenzhen Silver Basis | Industrial vs. Dezhan HealthCare Co | Industrial vs. De Rucci Healthy | Industrial vs. Humanwell Healthcare Group |
| Wenzhou Hongfeng vs. Jinxiandai Information Industry | Wenzhou Hongfeng vs. ButOne Information Corp | Wenzhou Hongfeng vs. CSSC Offshore Marine | Wenzhou Hongfeng vs. Luyin Investment Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |