Correlation Between INTER CARS and WUXI BIOLOGICS
Can any of the company-specific risk be diversified away by investing in both INTER CARS and WUXI BIOLOGICS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining INTER CARS and WUXI BIOLOGICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and WUXI BIOLOGICS UNSPADR2, you can compare the effects of market volatilities on INTER CARS and WUXI BIOLOGICS 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 INTER CARS with a short position of WUXI BIOLOGICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and WUXI BIOLOGICS.
Diversification Opportunities for INTER CARS and WUXI BIOLOGICS
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTER and WUXI is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and WUXI BIOLOGICS UNSPADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WUXI BIOLOGICS UNSPADR2 and INTER CARS 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 INTER CARS SA are associated (or correlated) with WUXI BIOLOGICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WUXI BIOLOGICS UNSPADR2 has no effect on the direction of INTER CARS i.e., INTER CARS and WUXI BIOLOGICS go up and down completely randomly.
Pair Corralation between INTER CARS and WUXI BIOLOGICS
Assuming the 90 days horizon INTER CARS SA is expected to generate 0.4 times more return on investment than WUXI BIOLOGICS. However, INTER CARS SA is 2.48 times less risky than WUXI BIOLOGICS. It trades about 0.01 of its potential returns per unit of risk. WUXI BIOLOGICS UNSPADR2 is currently generating about -0.01 per unit of risk. If you would invest 12,109 in INTER CARS SA on October 10, 2024 and sell it today you would lose (249.00) from holding INTER CARS SA or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. WUXI BIOLOGICS UNSPADR2
Performance |
| Timeline |
| INTER CARS SA |
| WUXI BIOLOGICS UNSPADR2 |
INTER CARS and WUXI BIOLOGICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and WUXI BIOLOGICS
The main advantage of trading using opposite INTER CARS and WUXI BIOLOGICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, WUXI BIOLOGICS 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 BIOLOGICS will offset losses from the drop in WUXI BIOLOGICS's long position.| INTER CARS vs. OURGAME INTHOLDL 00005 | INTER CARS vs. GAMING FAC SA | INTER CARS vs. DATAGROUP SE | INTER CARS vs. INFORMATION SVC GRP |
| WUXI BIOLOGICS vs. Host Hotels Resorts | WUXI BIOLOGICS vs. National Beverage Corp | WUXI BIOLOGICS vs. MTY Food Group | WUXI BIOLOGICS vs. Wyndham Hotels Resorts |
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
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |