Correlation Between HUAQIN TECHNOLOGY and WuXi Xinje
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and WuXi Xinje Electric, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and WuXi Xinje 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 HUAQIN TECHNOLOGY with a short position of WuXi Xinje. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and WuXi Xinje.
Diversification Opportunities for HUAQIN TECHNOLOGY and WuXi Xinje
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUAQIN and WuXi is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and WuXi Xinje Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi Xinje Electric and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with WuXi Xinje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi Xinje Electric has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and WuXi Xinje go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and WuXi Xinje
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.08 times more return on investment than WuXi Xinje. However, HUAQIN TECHNOLOGY is 1.08 times more volatile than WuXi Xinje Electric. It trades about 0.04 of its potential returns per unit of risk. WuXi Xinje Electric is currently generating about 0.0 per unit of risk. If you would invest 5,128 in HUAQIN TECHNOLOGY LTD on October 15, 2024 and sell it today you would earn a total of 1,759 from holding HUAQIN TECHNOLOGY LTD or generate 34.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 72.8% |
Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. WuXi Xinje Electric
Performance |
Timeline |
HUAQIN TECHNOLOGY LTD |
WuXi Xinje Electric |
HUAQIN TECHNOLOGY and WuXi Xinje Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUAQIN TECHNOLOGY and WuXi Xinje
The main advantage of trading using opposite HUAQIN TECHNOLOGY and WuXi Xinje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, WuXi Xinje 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 Xinje will offset losses from the drop in WuXi Xinje's long position.HUAQIN TECHNOLOGY vs. GRG Banking Equipment | HUAQIN TECHNOLOGY vs. Kuang Chi Technologies | HUAQIN TECHNOLOGY vs. Qilu Bank Co | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology |
WuXi Xinje vs. Hunan Mendale Hometextile | WuXi Xinje vs. Jinlong Machinery Electronic | WuXi Xinje vs. Qumei Furniture Group | WuXi Xinje vs. Aurora Optoelectronics 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |