Correlation Between WuXi AppTec and Shanghai Jin
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By analyzing existing cross correlation between WuXi AppTec Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on WuXi AppTec and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of WuXi AppTec and Shanghai Jin.
Diversification Opportunities for WuXi AppTec and Shanghai Jin
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WuXi and Shanghai is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding WuXi AppTec Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of WuXi AppTec i.e., WuXi AppTec and Shanghai Jin go up and down completely randomly.
Pair Corralation between WuXi AppTec and Shanghai Jin
Assuming the 90 days trading horizon WuXi AppTec Co is expected to generate 2.16 times more return on investment than Shanghai Jin. However, WuXi AppTec is 2.16 times more volatile than Shanghai Jin Jiang. It trades about 0.03 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.03 per unit of risk. If you would invest 5,190 in WuXi AppTec Co on October 14, 2024 and sell it today you would earn a total of 146.00 from holding WuXi AppTec Co or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WuXi AppTec Co vs. Shanghai Jin Jiang
Performance |
| Timeline |
| WuXi AppTec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Shanghai Jin Jiang |
WuXi AppTec and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WuXi AppTec and Shanghai Jin
The main advantage of trading using opposite WuXi AppTec and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WuXi AppTec position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin'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 |
| Shanghai Jin vs. State Grid InformationCommunication | Shanghai Jin vs. Songz Automobile Air | Shanghai Jin vs. Guangzhou Automobile Group | Shanghai Jin vs. CIMC Vehicles 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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