Correlation Between WuXi AppTec and Integrated Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between WuXi AppTec Co and Integrated Electronic Systems, you can compare the effects of market volatilities on WuXi AppTec and Integrated Electronic 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 WuXi AppTec with a short position of Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of WuXi AppTec and Integrated Electronic.
Diversification Opportunities for WuXi AppTec and Integrated Electronic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WuXi and Integrated is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding WuXi AppTec Co and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic and WuXi AppTec 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 WuXi AppTec Co are associated (or correlated) with Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of WuXi AppTec i.e., WuXi AppTec and Integrated Electronic go up and down completely randomly.
Pair Corralation between WuXi AppTec and Integrated Electronic
Assuming the 90 days trading horizon WuXi AppTec Co is expected to generate 0.25 times more return on investment than Integrated Electronic. However, WuXi AppTec Co is 3.93 times less risky than Integrated Electronic. It trades about -0.19 of its potential returns per unit of risk. Integrated Electronic Systems is currently generating about -0.15 per unit of risk. 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 |
WuXi AppTec Co vs. Integrated Electronic Systems
Performance |
| Timeline |
| WuXi AppTec |
| Integrated Electronic |
WuXi AppTec and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WuXi AppTec and Integrated Electronic
The main advantage of trading using opposite WuXi AppTec and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WuXi AppTec position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| WuXi AppTec vs. Integrated Electronic Systems | WuXi AppTec vs. Ciwen Media Co | WuXi AppTec vs. Threes Company Media | WuXi AppTec vs. Epoxy Base Electronic |
| Integrated Electronic vs. Wuhan Yangtze Communication | Integrated Electronic vs. Dr Peng Telecom | Integrated Electronic vs. Beijing Kingsoft Office | Integrated Electronic vs. Eastern Communications Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |