Correlation Between Weibo Corp and CINCINNATI
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By analyzing existing cross correlation between Weibo Corp and CINCINNATI FINL P, you can compare the effects of market volatilities on Weibo Corp and CINCINNATI 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 Weibo Corp with a short position of CINCINNATI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and CINCINNATI.
Diversification Opportunities for Weibo Corp and CINCINNATI
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weibo and CINCINNATI is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and CINCINNATI FINL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINCINNATI FINL P and Weibo Corp 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 Weibo Corp are associated (or correlated) with CINCINNATI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINCINNATI FINL P has no effect on the direction of Weibo Corp i.e., Weibo Corp and CINCINNATI go up and down completely randomly.
Pair Corralation between Weibo Corp and CINCINNATI
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 7.86 times more return on investment than CINCINNATI. However, Weibo Corp is 7.86 times more volatile than CINCINNATI FINL P. It trades about 0.02 of its potential returns per unit of risk. CINCINNATI FINL P is currently generating about -0.02 per unit of risk. If you would invest 902.00 in Weibo Corp on September 3, 2024 and sell it today you would earn a total of 58.00 from holding Weibo Corp or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 89.47% |
| Values | Daily Returns |
Weibo Corp vs. CINCINNATI FINL P
Performance |
| Timeline |
| Weibo Corp |
| CINCINNATI FINL P |
Weibo Corp and CINCINNATI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and CINCINNATI
The main advantage of trading using opposite Weibo Corp and CINCINNATI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, CINCINNATI 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 CINCINNATI will offset losses from the drop in CINCINNATI's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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