Correlation Between Weiqiao Textile and Eastern
Can any of the company-specific risk be diversified away by investing in both Weiqiao Textile and Eastern 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 Weiqiao Textile and Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weiqiao Textile and Eastern Co, you can compare the effects of market volatilities on Weiqiao Textile and Eastern 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 Weiqiao Textile with a short position of Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weiqiao Textile and Eastern.
Diversification Opportunities for Weiqiao Textile and Eastern
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weiqiao and Eastern is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Weiqiao Textile and Eastern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern and Weiqiao Textile 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 Weiqiao Textile are associated (or correlated) with Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern has no effect on the direction of Weiqiao Textile i.e., Weiqiao Textile and Eastern go up and down completely randomly.
Pair Corralation between Weiqiao Textile and Eastern
If you would invest 1,858 in Eastern Co on September 14, 2024 and sell it today you would earn a total of 1,041 from holding Eastern Co or generate 56.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Weiqiao Textile vs. Eastern Co
Performance |
| Timeline |
| Weiqiao Textile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastern |
Weiqiao Textile and Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weiqiao Textile and Eastern
The main advantage of trading using opposite Weiqiao Textile and Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weiqiao Textile position performs unexpectedly, Eastern 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 Eastern will offset losses from the drop in Eastern's long position.| Weiqiao Textile vs. Eastern Co | Weiqiao Textile vs. Inter Parfums | Weiqiao Textile vs. Skechers USA | Weiqiao Textile vs. Valneva SE ADR |
| Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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