Correlation Between Western Superconducting and Yuan Longping
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Superconducting Tech and Yuan Longping High tech, you can compare the effects of market volatilities on Western Superconducting and Yuan Longping 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 Western Superconducting with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Superconducting and Yuan Longping.
Diversification Opportunities for Western Superconducting and Yuan Longping
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Yuan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Western Superconducting Tech and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High and Western Superconducting 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 Western Superconducting Tech are associated (or correlated) with Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Western Superconducting i.e., Western Superconducting and Yuan Longping go up and down completely randomly.
Pair Corralation between Western Superconducting and Yuan Longping
Assuming the 90 days trading horizon Western Superconducting Tech is expected to generate 1.38 times more return on investment than Yuan Longping. However, Western Superconducting is 1.38 times more volatile than Yuan Longping High tech. It trades about 0.03 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.05 per unit of risk. If you would invest 3,945 in Western Superconducting Tech on October 22, 2024 and sell it today you would earn a total of 415.00 from holding Western Superconducting Tech or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Superconducting Tech vs. Yuan Longping High tech
Performance |
| Timeline |
| Western Superconducting |
| Yuan Longping High |
Western Superconducting and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Superconducting and Yuan Longping
The main advantage of trading using opposite Western Superconducting and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Superconducting position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.The idea behind Western Superconducting Tech and Yuan Longping High tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Yuan Longping vs. Pengxin International Mining | Yuan Longping vs. Chenzhou Jingui Silver | Yuan Longping vs. Zhongjing Food Co | Yuan Longping vs. JCHX Mining Management |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |