Correlation Between Weichai Heavy and Shenzhen Sunway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weichai Heavy Machinery and Shenzhen Sunway Communication, you can compare the effects of market volatilities on Weichai Heavy and Shenzhen Sunway 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 Weichai Heavy with a short position of Shenzhen Sunway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and Shenzhen Sunway.
Diversification Opportunities for Weichai Heavy and Shenzhen Sunway
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Weichai and Shenzhen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery and Shenzhen Sunway Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunway Comm and Weichai Heavy 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 Weichai Heavy Machinery are associated (or correlated) with Shenzhen Sunway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunway Comm has no effect on the direction of Weichai Heavy i.e., Weichai Heavy and Shenzhen Sunway go up and down completely randomly.
Pair Corralation between Weichai Heavy and Shenzhen Sunway
Assuming the 90 days trading horizon Weichai Heavy Machinery is expected to generate 1.87 times more return on investment than Shenzhen Sunway. However, Weichai Heavy is 1.87 times more volatile than Shenzhen Sunway Communication. It trades about 0.3 of its potential returns per unit of risk. Shenzhen Sunway Communication is currently generating about -0.19 per unit of risk. If you would invest 1,237 in Weichai Heavy Machinery on October 8, 2024 and sell it today you would earn a total of 413.00 from holding Weichai Heavy Machinery or generate 33.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Weichai Heavy Machinery vs. Shenzhen Sunway Communication
Performance |
Timeline |
Weichai Heavy Machinery |
Shenzhen Sunway Comm |
Weichai Heavy and Shenzhen Sunway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Weichai Heavy and Shenzhen Sunway
The main advantage of trading using opposite Weichai Heavy and Shenzhen Sunway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy position performs unexpectedly, Shenzhen Sunway 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 Shenzhen Sunway will offset losses from the drop in Shenzhen Sunway's long position.Weichai Heavy vs. BeiGene | Weichai Heavy vs. G bits Network Technology | Weichai Heavy vs. China Mobile Limited | Weichai Heavy vs. Gansu Jiu Steel |
Shenzhen Sunway vs. PetroChina Co Ltd | Shenzhen Sunway vs. Gansu Jiu Steel | Shenzhen Sunway vs. Aba Chemicals Corp | Shenzhen Sunway vs. Yes Optoelectronics Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |