Correlation Between Beijing Wantai and Weihai Honglin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wantai Biological and Weihai Honglin Electronic, you can compare the effects of market volatilities on Beijing Wantai and Weihai Honglin 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 Beijing Wantai with a short position of Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Weihai Honglin.
Diversification Opportunities for Beijing Wantai and Weihai Honglin
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Weihai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic and Beijing Wantai 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 Beijing Wantai Biological are associated (or correlated) with Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Weihai Honglin go up and down completely randomly.
Pair Corralation between Beijing Wantai and Weihai Honglin
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to generate 0.9 times more return on investment than Weihai Honglin. However, Beijing Wantai Biological is 1.11 times less risky than Weihai Honglin. It trades about -0.07 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about -0.18 per unit of risk. If you would invest 7,497 in Beijing Wantai Biological on August 28, 2024 and sell it today you would lose (225.00) from holding Beijing Wantai Biological or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Beijing Wantai Biological |
| Weihai Honglin Electronic |
Beijing Wantai and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Weihai Honglin
The main advantage of trading using opposite Beijing Wantai and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Beijing Wantai vs. Shenzhen Clou Electronics | Beijing Wantai vs. Techshine Electronics Co | Beijing Wantai vs. Sinofibers Technology Co | Beijing Wantai vs. Epoxy Base Electronic |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Shenzhen Mindray Bio Medical | Weihai Honglin vs. Jiangsu Pacific Quartz | Weihai Honglin vs. G bits Network Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |