Correlation Between Shenzhen Centralcon and Wuhan Yangtze
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Shenzhen Centralcon and Wuhan Yangtze 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 Shenzhen Centralcon with a short position of Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Wuhan Yangtze.
Diversification Opportunities for Shenzhen Centralcon and Wuhan Yangtze
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Wuhan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Wuhan Yangtze
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Centralcon Investment is 1.09 times less risky than Wuhan Yangtze. The stock trades about -0.03 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,708 in Wuhan Yangtze Communication on October 14, 2024 and sell it today you would earn a total of 354.00 from holding Wuhan Yangtze Communication or generate 20.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Centralcon Investment vs. Wuhan Yangtze Communication
Performance |
Timeline |
Shenzhen Centralcon |
Wuhan Yangtze Commun |
Shenzhen Centralcon and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Centralcon and Wuhan Yangtze
The main advantage of trading using opposite Shenzhen Centralcon and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.Shenzhen Centralcon vs. Weihai Honglin Electronic | Shenzhen Centralcon vs. Leyard Optoelectronic | Shenzhen Centralcon vs. TongFu Microelectronics Co | Shenzhen Centralcon vs. YiDong Electronics Technology |
Wuhan Yangtze vs. Changchun Engley Automobile | Wuhan Yangtze vs. Bank of Communications | Wuhan Yangtze vs. Guangzhou Automobile Group | Wuhan Yangtze vs. Chongqing Changan Automobile |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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