Correlation Between Westone Information and Hengli Petrochemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Westone Information Industry and Hengli Petrochemical Co, you can compare the effects of market volatilities on Westone Information and Hengli Petrochemical 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 Westone Information with a short position of Hengli Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westone Information and Hengli Petrochemical.
Diversification Opportunities for Westone Information and Hengli Petrochemical
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Westone and Hengli is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Westone Information Industry and Hengli Petrochemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Petrochemical and Westone Information 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 Westone Information Industry are associated (or correlated) with Hengli Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Petrochemical has no effect on the direction of Westone Information i.e., Westone Information and Hengli Petrochemical go up and down completely randomly.
Pair Corralation between Westone Information and Hengli Petrochemical
Assuming the 90 days trading horizon Westone Information Industry is expected to under-perform the Hengli Petrochemical. In addition to that, Westone Information is 1.56 times more volatile than Hengli Petrochemical Co. It trades about -0.04 of its total potential returns per unit of risk. Hengli Petrochemical Co is currently generating about 0.36 per unit of volatility. If you would invest 1,414 in Hengli Petrochemical Co on September 26, 2024 and sell it today you would earn a total of 134.00 from holding Hengli Petrochemical Co or generate 9.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Westone Information Industry vs. Hengli Petrochemical Co
Performance |
Timeline |
Westone Information |
Hengli Petrochemical |
Westone Information and Hengli Petrochemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Westone Information and Hengli Petrochemical
The main advantage of trading using opposite Westone Information and Hengli Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westone Information position performs unexpectedly, Hengli Petrochemical 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 Hengli Petrochemical will offset losses from the drop in Hengli Petrochemical's long position.Westone Information vs. Industrial and Commercial | Westone Information vs. China Construction Bank | Westone Information vs. Agricultural Bank of | Westone Information vs. Bank of China |
Hengli Petrochemical vs. Zijin Mining Group | Hengli Petrochemical vs. Wanhua Chemical Group | Hengli Petrochemical vs. Baoshan Iron Steel | Hengli Petrochemical vs. Shandong Gold Mining |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Stocks Directory Find actively traded stocks across global markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements |