Correlation Between Wintao Communications and Changjiang Jinggong
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By analyzing existing cross correlation between Wintao Communications Co and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Wintao Communications and Changjiang Jinggong 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 Wintao Communications with a short position of Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Changjiang Jinggong.
Diversification Opportunities for Wintao Communications and Changjiang Jinggong
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wintao and Changjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel and Wintao Communications 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 Wintao Communications Co are associated (or correlated) with Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Wintao Communications i.e., Wintao Communications and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Wintao Communications and Changjiang Jinggong
Assuming the 90 days trading horizon Wintao Communications is expected to generate 1.12 times less return on investment than Changjiang Jinggong. In addition to that, Wintao Communications is 1.6 times more volatile than Changjiang Jinggong Steel. It trades about 0.13 of its total potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.24 per unit of volatility. If you would invest 240.00 in Changjiang Jinggong Steel on September 10, 2024 and sell it today you would earn a total of 92.00 from holding Changjiang Jinggong Steel or generate 38.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Wintao Communications Co vs. Changjiang Jinggong Steel
Performance |
Timeline |
Wintao Communications |
Changjiang Jinggong Steel |
Wintao Communications and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wintao Communications and Changjiang Jinggong
The main advantage of trading using opposite Wintao Communications and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Bank of China |
Changjiang Jinggong vs. Industrial and Commercial | Changjiang Jinggong vs. Agricultural Bank of | Changjiang Jinggong vs. China Construction Bank | Changjiang Jinggong vs. Postal Savings Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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