Correlation Between Wetouch Technology and New Concept
Can any of the company-specific risk be diversified away by investing in both Wetouch Technology and New Concept 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 Wetouch Technology and New Concept into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wetouch Technology Common and New Concept Energy, you can compare the effects of market volatilities on Wetouch Technology and New Concept 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 Wetouch Technology with a short position of New Concept. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wetouch Technology and New Concept.
Diversification Opportunities for Wetouch Technology and New Concept
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wetouch and New is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wetouch Technology Common and New Concept Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Concept Energy and Wetouch Technology 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 Wetouch Technology Common are associated (or correlated) with New Concept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Concept Energy has no effect on the direction of Wetouch Technology i.e., Wetouch Technology and New Concept go up and down completely randomly.
Pair Corralation between Wetouch Technology and New Concept
Given the investment horizon of 90 days Wetouch Technology is expected to generate 1.43 times less return on investment than New Concept. In addition to that, Wetouch Technology is 1.98 times more volatile than New Concept Energy. It trades about 0.03 of its total potential returns per unit of risk. New Concept Energy is currently generating about 0.08 per unit of volatility. If you would invest 118.00 in New Concept Energy on August 28, 2024 and sell it today you would earn a total of 4.00 from holding New Concept Energy or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wetouch Technology Common vs. New Concept Energy
Performance |
| Timeline |
| Wetouch Technology Common |
| New Concept Energy |
Wetouch Technology and New Concept Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wetouch Technology and New Concept
The main advantage of trading using opposite Wetouch Technology and New Concept positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wetouch Technology position performs unexpectedly, New Concept 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 New Concept will offset losses from the drop in New Concept's long position.| Wetouch Technology vs. Tree Island Steel | Wetouch Technology vs. Santeon Group | Wetouch Technology vs. Ferrexpo PLC | Wetouch Technology vs. Aquagold International |
| New Concept vs. Marcus Millichap | New Concept vs. Frp Holdings Ord | New Concept vs. Maui Land Pineapple | New Concept vs. Wetouch Technology Common |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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