Correlation Between Japan Asia and Wenzhou Kangning
Can any of the company-specific risk be diversified away by investing in both Japan Asia and Wenzhou Kangning 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 Japan Asia and Wenzhou Kangning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Asia Investment and Wenzhou Kangning Hospital, you can compare the effects of market volatilities on Japan Asia and Wenzhou Kangning 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 Japan Asia with a short position of Wenzhou Kangning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Asia and Wenzhou Kangning.
Diversification Opportunities for Japan Asia and Wenzhou Kangning
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Japan and Wenzhou is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Japan Asia Investment and Wenzhou Kangning Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Kangning Hospital and Japan Asia 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 Japan Asia Investment are associated (or correlated) with Wenzhou Kangning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Kangning Hospital has no effect on the direction of Japan Asia i.e., Japan Asia and Wenzhou Kangning go up and down completely randomly.
Pair Corralation between Japan Asia and Wenzhou Kangning
Assuming the 90 days horizon Japan Asia is expected to generate 14.1 times less return on investment than Wenzhou Kangning. In addition to that, Japan Asia is 1.09 times more volatile than Wenzhou Kangning Hospital. It trades about 0.0 of its total potential returns per unit of risk. Wenzhou Kangning Hospital is currently generating about 0.05 per unit of volatility. If you would invest 83.00 in Wenzhou Kangning Hospital on October 31, 2024 and sell it today you would earn a total of 51.00 from holding Wenzhou Kangning Hospital or generate 61.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Japan Asia Investment vs. Wenzhou Kangning Hospital
Performance |
| Timeline |
| Japan Asia Investment |
| Wenzhou Kangning Hospital |
Japan Asia and Wenzhou Kangning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Asia and Wenzhou Kangning
The main advantage of trading using opposite Japan Asia and Wenzhou Kangning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Asia position performs unexpectedly, Wenzhou Kangning 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 Wenzhou Kangning will offset losses from the drop in Wenzhou Kangning's long position.| Japan Asia vs. The Trade Desk | Japan Asia vs. BURLINGTON STORES | Japan Asia vs. H2O Retailing | Japan Asia vs. Ross Stores |
| Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc | Wenzhou Kangning vs. Apple Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |