Correlation Between Epoxy Base and WuXi AppTec
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By analyzing existing cross correlation between Epoxy Base Electronic and WuXi AppTec Co, you can compare the effects of market volatilities on Epoxy Base and WuXi AppTec 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 Epoxy Base with a short position of WuXi AppTec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and WuXi AppTec.
Diversification Opportunities for Epoxy Base and WuXi AppTec
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Epoxy and WuXi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and WuXi AppTec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi AppTec and Epoxy Base 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 Epoxy Base Electronic are associated (or correlated) with WuXi AppTec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi AppTec has no effect on the direction of Epoxy Base i.e., Epoxy Base and WuXi AppTec go up and down completely randomly.
Pair Corralation between Epoxy Base and WuXi AppTec
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to under-perform the WuXi AppTec. In addition to that, Epoxy Base is 2.7 times more volatile than WuXi AppTec Co. It trades about -0.11 of its total potential returns per unit of risk. WuXi AppTec Co is currently generating about -0.19 per unit of volatility. If you would invest 5,650 in WuXi AppTec Co on October 14, 2024 and sell it today you would lose (314.00) from holding WuXi AppTec Co or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. WuXi AppTec Co
Performance |
| Timeline |
| Epoxy Base Electronic |
| WuXi AppTec |
Epoxy Base and WuXi AppTec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and WuXi AppTec
The main advantage of trading using opposite Epoxy Base and WuXi AppTec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base position performs unexpectedly, WuXi AppTec 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 WuXi AppTec will offset losses from the drop in WuXi AppTec's long position.| Epoxy Base vs. Silkroad Visual Technology | Epoxy Base vs. Chengdu Xinzhu RoadBridge | Epoxy Base vs. Telling Telecommunication Holding | Epoxy Base vs. Tongyu Communication |
| WuXi AppTec vs. Integrated Electronic Systems | WuXi AppTec vs. Ciwen Media Co | WuXi AppTec vs. Threes Company Media | WuXi AppTec vs. Epoxy Base Electronic |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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