Correlation Between Western Securities and Hubei Yingtong
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By analyzing existing cross correlation between Western Securities Co and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Western Securities and Hubei Yingtong 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 Western Securities with a short position of Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Securities and Hubei Yingtong.
Diversification Opportunities for Western Securities and Hubei Yingtong
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Hubei is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Western Securities Co and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec and Western Securities 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 Western Securities Co are associated (or correlated) with Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Western Securities i.e., Western Securities and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Western Securities and Hubei Yingtong
Assuming the 90 days trading horizon Western Securities is expected to generate 2.1 times less return on investment than Hubei Yingtong. But when comparing it to its historical volatility, Western Securities Co is 1.82 times less risky than Hubei Yingtong. It trades about 0.04 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 988.00 in Hubei Yingtong Telecommunication on October 9, 2024 and sell it today you would earn a total of 157.00 from holding Hubei Yingtong Telecommunication or generate 15.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Western Securities Co vs. Hubei Yingtong Telecommunicati
Performance |
Timeline |
Western Securities |
Hubei Yingtong Telec |
Western Securities and Hubei Yingtong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Securities and Hubei Yingtong
The main advantage of trading using opposite Western Securities and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Securities position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.Western Securities vs. Agricultural Bank of | Western Securities vs. Industrial and Commercial | Western Securities vs. Bank of China | Western Securities vs. PetroChina Co Ltd |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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