Correlation Between Zhongtong Guomai and Wuhan Xianglong
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Wuhan Xianglong Power, you can compare the effects of market volatilities on Zhongtong Guomai and Wuhan Xianglong 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 Zhongtong Guomai with a short position of Wuhan Xianglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Wuhan Xianglong.
Diversification Opportunities for Zhongtong Guomai and Wuhan Xianglong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongtong and Wuhan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Wuhan Xianglong Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Xianglong Power and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Wuhan Xianglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Xianglong Power has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Wuhan Xianglong go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Wuhan Xianglong
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 0.73 times more return on investment than Wuhan Xianglong. However, Zhongtong Guomai Communication is 1.37 times less risky than Wuhan Xianglong. It trades about 0.24 of its potential returns per unit of risk. Wuhan Xianglong Power is currently generating about 0.04 per unit of risk. If you would invest 905.00 in Zhongtong Guomai Communication on August 29, 2024 and sell it today you would earn a total of 214.00 from holding Zhongtong Guomai Communication or generate 23.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Wuhan Xianglong Power
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Wuhan Xianglong Power |
Zhongtong Guomai and Wuhan Xianglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Wuhan Xianglong
The main advantage of trading using opposite Zhongtong Guomai and Wuhan Xianglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Wuhan Xianglong 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 Wuhan Xianglong will offset losses from the drop in Wuhan Xianglong's long position.| Zhongtong Guomai vs. Cultural Investment Holdings | Zhongtong Guomai vs. Gome Telecom Equipment | Zhongtong Guomai vs. Bus Online Co | Zhongtong Guomai vs. Holitech Technology Co |
| Wuhan Xianglong vs. Ming Yang Smart | Wuhan Xianglong vs. 159681 | Wuhan Xianglong vs. 159005 | Wuhan Xianglong vs. Loctek Ergonomic 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 Positions Ratings module to 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.
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